Trade-Ideas: Wynn Resorts (WYNN) Is Today's Weak On High Relative Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume 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 $232.7 million.
- WYNN has traded 571,184 shares today.
- WYNN is trading at 3.14 times the normal volume for the stock at this time of day.
- WYNN is trading at a new low 3.00% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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-Ideas
More details on WYNN:
Wynn Resorts, Limited, together with its subsidiaries, develops, owns, and operates destination casino resorts. It operates in two segments, Macau Operations and Las Vegas Operations. The company operates Wynn Macau and Encore at Wynn Macau resort located in the People's Republic of China. The stock currently has a dividend yield of 2.1%. WYNN has a PE ratio of 31. Currently there are 5 analysts that rate Wynn Resorts a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Wynn Resorts has been 2.7 million shares per day over the past 30 days. Wynn has a market cap of $9.8 billion and is part of the services sector and leisure industry. The stock has a beta of 1.82 and a short float of 34.4% with 3.58 days to cover. Shares are up 37.1% year-to-date as of the close of trading on Wednesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Wynn Resorts as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 268.6% when compared to the same quarter one year prior, rising from -$44.60 million to $75.22 million.
- Net operating cash flow has significantly increased by 868.48% to $115.37 million when compared to the same quarter last year. In addition, WYNN RESORTS LTD has also vastly surpassed the industry average cash flow growth rate of 14.82%.
- WYNN RESORTS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WYNN RESORTS LTD reported lower earnings of $1.93 versus $7.17 in the prior year. This year, the market expects an improvement in earnings ($3.64 versus $1.93).
- WYNN, with its decline in revenue, underperformed when compared the industry average of 11.0%. Since the same quarter one year prior, revenues slightly dropped by 8.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- WYNN has underperformed the S&P 500 Index, declining 20.11% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full Wynn Resorts Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.