Last week, the casino operator reported 2015 fourth quarter adjusted earnings of $1.02 per share on revenue of $946.9 million, compared to analysts' expectations for earnings of 76 cents per share on revenue of $948.4 million.
Although Macau earnings declined by 33.6% during the fourth quarter, January was the Macau business's "best month in a long time," founder Steve Wynn said on a conference call, Bloomberg reported.
Based in Las Vegas, Wynn Resorts develops, owns and operates casino resorts in Las Vegas and China's Macau gaming hub.
Wynn Resorts has been tracing out a bottom over the past few months, and may have put that in and tested it in January. The stock delivered strong earnings last week and bolted higher the following day, but impressively followed through with some very strong turnover to boot.
The series of lower highs was broken significantly, the downtrend line now support. Ahead is the 200-day moving average, which, if reached within days, would put Wynn at a very significantly overbought level, hence a pullback could be witnessed.
The moving average convergence divergence (MACD) is now on a strong buy signal, the relative strength at levels that could be considered overbought, but with some more upside this will be embedded, much tougher to change the direction.
The slope of the RS is very impressive. Lastly, turnover has been massive the last few days as the stock has traded well over 5x the average day's volume. Institutional buyers are coming back to the stock in a big way.
There is a big gap to fill around the $100 area, which will eventually be filled, but it won't happen overnight. Wynn is one of my stocks of the year for 2016, and this latest move has this stock looking in the right direction.
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Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.
Wynn Resorts' strengths such as its expanding profit margins over time are countered by weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: WYNN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.