Wynn Resorts Limited (WYNN:NSD) Analysts rate as a Buy, but Fundamental Analysis is Bearish

STA Research
by: STA Research
Wynn Resorts Limited

Based on the Wynn Resorts stock price forecast from 12 analysts, the average analyst Wynn price target for Wynn Resorts Limited is USD 96.47 over the next 12 months. Wynn Resorts Limited’s average analyst rating is Buy. Stock Target Advisor’s own Wynn stock price analysis is Bearish, which is based on 3 positive signals and 9 negative signals. At the last closing, Wynn stock price was USD 66.03Wynn stock price has changed by +1.62% over the past week, +9.57% over the past month and -32.24% over the last year.

Wynn Resorts, Limited designs, develops, and operates integrated resorts. Its Wynn Palace segment operates 424,000 square feet of casino space with 323 table games, 1,035 slot machines, private gaming salons, and sky casinos; a luxury hotel tower with 1,706 guest rooms, suites, and villas, including a health club, spa, salon, and pool; 14 food and beverage outlets; 107,000 square feet of retail space; 37,000 square feet of meeting and convention space; and performance lake and floral art displays. The company was founded in 2002 and is based in Las Vegas, Nevada.

 

What we like:

High market capitalization:

Wynn Resorts stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility:

The annual returns for Wynn Resorts stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive free cash flow:

Wynn stock price forecast has shown positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk adjusted returns:

Wynn stock price forecast has shown that the company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median total returns:

Wynn Resorts stock has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns:

The average income yield of Wynn Resorts stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

Wynn stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

Wynn stock price is trading high compared to its peers median on a price to book value basis.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis:

Wynn stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

Wynn stock price has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

Wynn stock price has shown below median revenue growth in the previous 5 years compared to its sector

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