NEW YORK (TheStreet) -- Shares of Wynn Resorts (WYNN) are getting a boost today as revenue out of China's Macau gaming hub increased for the third consecutive month in October. Gross gaming revenue was up 8.8% to $2.73 billion in the only area in China where gambling is legal.
A Bloomberg survey of seven analysts forecast a rise of only 5.5% in October Macau revenue. That was due in part to China's Golden Week holidays, which brought more visitors to the region, as well as the opening of new billion dollar resorts.
Wynn develops, owns and operates casino resorts all over the world.
"This could be an auspicious sign for Wynn Resorts ahead of the company's report tomorrow," BloombergTV's Abigail Doolittle reported on "Bloomberg Daybreak: Americas" this morning. The company will release its third quarter earnings results on Wednesday.
Looking at the Bloomberg chart for Wynn Resorts it "suggests that near term strength could continue," Doolittle said. "This is a six month chart, we see the stock trading in a range, a bit of a tug of war between the bears and the bulls. But we also have a bullish consolidation pattern, which suggests shares of Wynn Resorts could go right back up to the top of that range. Somewhere between $105 and $110 per share."
Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate WYNN RESORTS LTD as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
You can view the full analysis from the report here: WYNN