Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 29 Oct, 24 | WYNN | Speculative Buy | USD 98.62 | USD 106.5 | USD 117.0 | Same day | 18.6% |
Data Powered by EOD Historical Data (“EODHD”).
Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.
Greater Profitability: 9.5% in Q1 FY24 vs Industry Median of 6.5%
Increased Operating Efficiency: Asset Turnover of 0.14x in Q1 FY24 vs 0.10x in Q1 FY23
Increasing Cash Cycle: 5.2 Days in Q1 FY24 vs 0.8 Days in Q1 FY23
Declining Liquidity: Current Ratio of 1.43x in Q1 FY24 vs 3.10x in Q1 FY23
Supply Chain Vulnerabilities, Technology Dependence, Gaming Revenue Volatility, High Capital Expenditure, Luxury Market Dependence, Regulatory Scrutiny, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 98.62 | 89.0 | 106.5 | 117.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
WYNN's stock is trading above a key horizontal trendline and has consolidated after peaking, accompanied by rising trading volumes. The 14-day Relative Strength Index (RSI) is at 56.50, indicating stability at support while remaining in bullish territory. However, with the current market price (CMP) positioned below the 50-period SMA, these levels will likely act as significant resistance zones.
These technical indicators suggest a positive outlook for the stock, hinting at a potential shift in its price trajectory. With robust support levels and prevailing bullish sentiment, investors may find attractive opportunities to capitalize on WYNN's performance in the near term. Key resistance levels are expected around USD 106.50 and USD 117.00, while support level is identified at USD 89.00.
As per the above-mentioned technical indicators analysis, a ‘Speculative Buy’ rating has been given to Wynn Resorts Ltd (NASDAQ: WYNN) at the closing market price of USD 98.62 as of 28 October 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Resorts & Casinos
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| WYNN Wynn Resorts Limited |
-0.275 0.31% | 88.42 | 12.39 | 20.45 | 1.74 | 12.01 | 3.21 | 12.17 |
| LVS Las Vegas Sands Corp |
0.69 1.35% | 51.71 | 56.23 | 16.29 | 4.18 | 7.87 | 5.21 | 15.33 |
| GXYEF Galaxy Entertainment Group Ltd |
- -% | 4.30 | 135.79 | 14.12 | 1.15 | 2.73 | 1.07 | 7.83 |
| GXYYY Galaxy Entertainment Group Ltd ADR |
0.27 1.25% | 21.83 | 670.00 | 14.04 | 1.15 | 2.71 | 1.08 | 7.93 |
| SCHYY Sands China Ltd ADR |
1.78 6.60% | 28.75 | - | 12.08 | 6.70 | 211.73 | 8.69 | 51.08 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 28, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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