Analyst: Casino Stock Could Outperform Peers

Year-over-year, WYNN is still down more than 34%

Digital Content Manager
Sep 15, 2022 at 9:26 AM
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Wynn Resorts, Limited (NASDAQ:WYNN) is up 3.3% to trade at $62.72 this morning, after Credit Suisse upgraded the security to "outperform" from "neutral." The brokerage noted the casino concern could outperform its peers thanks to its "compelling" growth potential, with the expansion of its Las Vegas convention center serving as a margin driver while hotel occupancy rates rise. 

Coming into today, six of the nine analysts covering WYNN called it a "hold," while three said "strong buy." This leaves ample room for more upgrades to roll in. Short sellers, meanwhile, are hitting the exits, though the 6.83 million shares sold short still make up 6.6% of the stock's available float.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Wynn Resorts stock has a 50-day call/put volume ratio of 2.28, which ranks higher than 71% of readings from the past year. This suggests long calls have been getting picked up at a much faster-than-usual clip in the last 10 weeks.

Digging deeper, the security has been testing a floor at the $58 level so far this month, after the $70 level rejected its mid-August rally. The 120-day moving average is still pressuring the shares lower, and year-over-year WYNN remains down 34.2%.

 

 

 

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