Wynn Resorts Ltd (WYNN): Today's Featured Leisure Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Wynn Resorts ( WYNN) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Wynn Resorts fell $2.09 (-1.8%) to $112.29 on average volume. Throughout the day, 1.5 million shares of Wynn Resorts exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $111.82-$116 after having opened the day at $114.04 as compared to the previous trading day's close of $114.38. Other companies within the Leisure industry that declined today were: Buffalo Wild Wings ( BWLD), down 10.5%, Brinker International ( EAT), down 10.2%, Six Flags Entertainment ( SIX), down 9.9%, and Bravo Brio Restaurant Group ( BBRG), down 8.8%.
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Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. Wynn Resorts has a market cap of $11.61 billion and is part of the services sector. The company has a P/E ratio of 22.2, below the average leisure industry P/E ratio of 22.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Wynn Resorts a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Wynn Resorts as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.

On the positive front, Pinnacle Entertainment ( PNK), up 8.2%, Panera Bread Company ( PNRA), up 5%, Good Times Restaurants ( GTIM), up 4.5%, and Dover Downs Gaming & Entertainment ( DDE), up 3.4%, were all gainers within the leisure industry with Chipotle Mexican Grill ( CMG) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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