Wynn Resorts Ltd (WYNN): Leisure's Highlighted Dud Of The Day

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 0.6%. By the end of trading, Wynn Resorts fell $1.23 (-1%) to $121.09 on light volume. Throughout the day, 649,205 shares of Wynn Resorts exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $121.09-$122.88 after having opened the day at $121.99 as compared to the previous trading day's close of $122.32. Other companies within the Leisure industry that declined today were: Ignite Restaurant Group ( IRG), down 8.3%, Luby's ( LUB), down 6%, Orbitz Worldwide ( OWW), down 3.7%, and Caesars Entertainment ( CZR), down 3.7%.
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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 $12.13 billion and is part of the services sector. The company has a P/E ratio of 24.9, above the S&P 500 P/E ratio of 17.7. Shares are up 6.6% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Wynn Resorts a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Wynn Resorts as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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