Share Dilution

Here’s Why You Should Keep Wynn Resorts (WYNN) Stock Now – January 18, 2022

The past two years have been difficult for the gaming industry and Wynn Resorts, Limited (WYNN Free Report) was no exception to the trend. Over the past two years, the company’s shares have fallen 39.6%, compared to 18.8% for the industry. Dismal visits due to the pandemic and stricter game rules in Macau had a negative impact on business performance.

However, the improvement in the number of visits and the strong demand for sports betting should help the company. The company also breathed a sigh of relief after the Macau government proposed new amendments regarding the renewal of gaming concessions. The announcement eliminates fear of potential dilution of existing casino operators in the region. The new rules are subject to the approval of the Macao legislature.

Image source: Zacks Investment Research

Main drivers of growth

Although the company’s operations in Macau and Las Vegas have been affected by the coronavirus pandemic, demand is gradually improving. The Company’s large-scale integrated resort in Cotai, Macau is set to see an increase in visits from tourists and long-term leisure players, which should strengthen its position in the Cotai Strip. . Such projects should attract business and leisure travelers and provide a solid platform for growth. In fact, building resorts in Boston and Macau will help Wynn Resorts capitalize on strong consumer spending trends in the region.

Wynn Resorts generates a solid share of revenue from Macau, the world’s largest gaming destination. Despite the coronavirus pandemic, the company is confident about its prospects in Macau. The worst seems to be over for the gaming industry in Macau as the Chinese economy slowly gains momentum.

Zacks Rank #3 (Hold) company focused on expanding sports betting to drive growth. In an effort to focus on online betting, he announced the merger of Wynn Interactive with Austerlitz Acquisition Corp. The company will invest $640 million to drive growth. Meanwhile, sports betting and online casino app WynnBET had been operational in New Jersey for quite some time.

In the second quarter of 2021, the company moved forward with a new product delivery and marketing program, specifically for the 2021 NFL football season. This includes web application launches in Indiana, Colorado, Tennessee, New Jersey and Virginia. It has strengthened its partnerships with third parties through agreements with the Detroit Lions, Colorado Rockies and Cumulus Media. The company has also collaborated with several engaging content creators to develop a unique sports-themed program. As of September 30, 2021, Wynn Interactive has generated annualized gross revenues of over $170 million. Going forward, the company expects strong revenue generation through new product features and a unique marketing campaign.

Key Choices

Some top-ranked stocks in Zacks’ Consumer Discretionary sector include Hilton Grand Vacations Inc. (heavyweight free report), Bluegreen Vacations Holding Corporation (BVH free report) and RCI Hospitality Holdings, Inc. (GRINDSTONE free report).

Hilton Grand Vacations sports a Zacks #1 (Strong Buy) rating. The company has an earnings surprise for the last four quarters of 411.1% on average. Shares of Hilton Grand Vacations have appreciated 58.4% over the past year. You can see the full list of today’s Zacks #1 Rank stocks here.

Zacks consensus estimate for HGV’s 2022 sales and earnings per share (EPS) suggests growth of 27.7% and 154.4%, respectively, from prior year period levels .

Bluegreen Vacations sports a No. 1 Zacks rank. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of Bluegreen Vacations have jumped 156.4% over the past year.

The Zacks consensus estimate for BVH’s 2022 sales and EPS indicates an increase of 7.6% and 0.4%, respectively, from prior year period levels.

RCI Hospitality boasts a Zacks No. 1 ranking. The company has a last four quarter earnings surprise of 67.7% on average. Shares of RCI Hospitality have climbed 123.9% over the past year.

Zacks’ consensus estimate for RICK’s 2022 sales and EPS suggests growth of 34.9% and 22.1%, respectively, from prior year period levels.