Today's Pre-Market Trading Very Positive For Wynn Resorts (WYNN)

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.

Trade-Ideas LLC identified Wynn Resorts ( WYNN) as a pre-market leader 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 $254.8 million.
  • WYNN traded 10,857 shares today in the pre-market hours as of 7:59 AM.
  • WYNN is up 3.6% today from yesterday's close.

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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%. WYNN has a PE ratio of 22. Currently there are 5 analysts that rate Wynn Resorts a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for Wynn Resorts has been 2.6 million shares per day over the past 30 days. Wynn has a market cap of $10.0 billion and is part of the services sector and leisure industry. The stock has a beta of 0.77 and a short float of 8.5% with 2.97 days to cover. Shares are down 32.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Wynn Resorts as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • WYNN, with its decline in revenue, underperformed when compared the industry average of 7.3%. Since the same quarter one year prior, revenues fell by 27.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 37.98% is the gross profit margin for WYNN RESORTS LTD which we consider to be strong. Regardless of WYNN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WYNN's net profit margin of -4.08% significantly underperformed when compared to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.76%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 119.81% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 119.7% when compared to the same quarter one year ago, falling from $226.90 million to -$44.60 million.
  • Net operating cash flow has significantly decreased to -$15.01 million or 107.17% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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