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
) 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 $418.5 million.
- WYNN has a PE ratio of 31.4.
- 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 2.1%.
'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.
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More 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 2.1%. WYNN has a PE ratio of 31.4. Currently there are 10 analysts that rate Wynn Resorts a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Wynn Resorts has been 1.4 million shares per day over the past 30 days. Wynn has a market cap of $19.6 billion and is part of the services sector and leisure industry. The stock has a beta of 1.57 and a short float of 4.9% with 1.63 days to cover. Shares are down 0.2% year-to-date as of the close of trading on Thursday.
rates Wynn Resorts as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- WYNN's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 61.26% and other important driving factors, this stock has surged by 66.70% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, WYNN RESORTS LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 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 62.5% when compared to the same quarter one year prior, rising from $112.04 million to $182.02 million.
- Net operating cash flow has increased to $370.53 million or 12.82% 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 -68.21%.
- You can view the full Wynn Resorts Ratings Report.