Wynn Resorts Ltd (WYNN): Today's Featured Services Winner

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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.6%. By the end of trading, Wynn Resorts rose $1.73 (1.4%) to $125.22 on heavy volume. Throughout the day, 2.9 million shares of Wynn Resorts exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in a price between $123.32-$126.95 after having opened the day at $125.50 as compared to the previous trading day's close of $123.49. Other companies within the Services sector that increased today were: WMS Industries ( WMS), up 51.2%, Harte-Hanks ( HHS), up 28%, Education Management Corporation ( EDMC), up 22.7%, and Performant Financial ( PFMT), up 15.2%.
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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 $12.46 billion and is part of the leisure industry. The company has a P/E ratio of 23, above the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Wynn Resorts a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Wynn Resorts as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, 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.

On the negative front, School Specialty ( SCHS), down 28.9%, Liquidity Service ( LQDT), down 22.4%, China Jo-Jo Drugstores ( CJJD), down 15.5%, and Chanticleer Holdings ( HOTR), down 14.3%, were all laggards within the services sector with Comcast ( CMCSK) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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