Trade-Ideas: Wynn Resorts (WYNN) Is Today's Momo Momentum Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Wynn Resorts (WYNN) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Wynn Resorts as such a stock due to the following factors:
- WYNN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $222.8 million.
- WYNN has a PE ratio of 28.3.
- WYNN is currently in the upper 30% of its 1-year range.
- WYNN is in the upper 25% of its 20-day range.
- WYNN is in the upper 35% of its 5-day range.
- WYNN is currently trading above yesterday's high.
- WYNN has experienced a gap between today's open and yesterday's close of 0.4%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.EXCLUSIVE OFFER: Get the inside scoop on opportunities in WYNN with the Ticky from Trade-Ideas. See the FREE profile for WYNN NOW at Trade-IdeasMore details on WYNN: Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The stock currently has a dividend yield of 2.6%. WYNN has a PE ratio of 28.3. Currently there are 12 analysts that rate Wynn Resorts a buy, no analysts rate it a sell, and 6 rate it a hold.The average volume for Wynn Resorts has been 1.1 million shares per day over the past 30 days. Wynn has a market cap of $15.8 billion and is part of the services sector and leisure industry. The stock has a beta of 1.69 and a short float of 9% with 4.50 days to cover. Shares are up 38.8% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Wynn Resorts as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- WYNN's revenue growth has slightly outpaced the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, WYNN's share price has jumped by 46.23%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WYNN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has significantly increased by 51.99% to $489.94 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.14%.
- 37.11% is the gross profit margin for WYNN RESORTS LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.74% trails the industry average.
- WYNN RESORTS LTD's earnings per share declined by 6.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WYNN RESORTS LTD reported lower earnings of $4.81 versus $4.89 in the prior year. This year, the market expects an improvement in earnings ($6.74 versus $4.81).
- You can view the full Wynn Resorts Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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