The Strong Buy recommendation for Wynn Resorts Ltd (NASDAQ:WYNN) is grounded on a ranking in the company's sector group that is in the top decile, a ranking in its industry group that is in the top third, a quantitative risk/reward calculation that is very attractive, and analytical scores that are near average. While WYNN derives some benefit of being in an industry group that is ranked well above average in investment attractiveness, its sector is ranked near average in attractiveness which may offset this to a degree. The a Strong Buy rating for WYNN is based on the Portfolio Grader stock evaluator. With unique fundamental and quantitative algorithmic, this analytical tool assesses nearly 5,000 stocks weekly. The current Portfolio Grader recommendation on the shares has been in place for the last month.
As one of the 258 companies in the GICS Consumer Services sector the company is a component of the 24 company Casinos/Gaming GICS industry group within this sector. WYNN has a market value of $18.5 billion which is in the top 25% of its industry group Portfolio Grader's current ranking for WYNN puts it 7 among the 24 companies in this industry group, placing it in the top half.
Currently, Portfolio Grader ranks the Consumer Services sector number 11 among the 20 sectors in its universe putting it in the third quartile of all the GICS sectors. The Casinos/Gaming industry group is ranked 2 among the 129 industry groups within the GICS sectors, placing it well above-average in terms of the Proprietary Quantitative Score scoring system.
WYNN has earned well above-average scores in 3, and above-average scores in 2 of the 8 fundamental areas analyzed by Portfolio Grader in the ranking of company stocks.
The company's operational scores are a source of strength with a ranking for sales growth, operating margin and earnings growth that are discernibly above average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions that is much better than the industry average but rankings for earnings surprises and earnings momentum worse than average. WYNN's ranking for return on equity is significantly better than its industry group average but its grade for cash flow is below-average. These fundamental scores give Wynn Resorts a position in the top half of the industry group.
Portfolio Grader quantitatively views WYNN's shares using the Proprietary Quantitative Score. This metric looks at WYNN's shares from the angle of risk/reward. This exclusive scoring system considers the relative value of the company's shares based on the recent $163.48 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, WYNN currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.
