Image Source: Pexels

• Wynn Resorts share price has jumped sharply in the past few months.
• The company's CEO said that the firm was firing on all cylinders.
• Wynn is a highly diversified casino and resort company with a presence in key markets.

Wynn Resorts (WYNN) stock price continued soaring after the company published strong results this week. The shares crossed the important resistance point at $100 and is now sitting at its highest point since 1st September last year. 

Firing on all cylinders

When delivering his opening statement, Wynn Resorts’s CEO, Craig Billings, noted that the company was firing on all cylinders. He is correct as the casino and gaming company continued to have major tailwinds in the final quarter of the year. 

Unlike Las Vegas Sands, Wynn Resorts is a more diversified company in terms of its global operations. It has vast assets in key places like Macau, Boston, and Las Vegas and a growing franchise in the Middle East.

Wynn Resorts EBITDA in the last quarter jumped to a record high of over $632 million. This growth was spread across all its locations. In Las Vegas, its EBITDA surged by 24% to $271 million, helped by strong demand because of the Formula 1 event. In Macau, the company’s EBITDA came in at $297 million and is expected to do well in the coming quarters.

The company has numerous catalysts this year. The most obvious one is the upcoming Super Bowl event, which is expected to attract thousands of people to Las Vegas. Some of these people, most of whom will be from other states, are expected to stay and spend money at Wynn.

Further, Las Vegas is positioning itself as a major sports hub in the US. In the most recent years, the city has become a major hub for sports teams across all industries, leading to an influx in tourists. For example, key venues like the Allegiant Stadium and The Sphere are seeing more visitors and the city is benefiting. Data shows that the state moved to a budget surplus of over $50 million in 2023.

Wynn has also invested in the Middle East, where it is constructing Wynn Al Marjan, a project that is expected to be complete in the next few years. The benefit of this is that many wealthy people are now moving to wealthy capitals in the Middle East. Further, the company will benefit from the upcoming Chinese Lunar New Year.

Taken together, Wynn has a diversified business, which ensures that a weakness in one geography is offset by the strength of the others. The challenge is that Wynn is quite overvalued as it has a forward PE multiple of 31 vs the sector median of 15.8.

Wynn Resorts stock price forecast

WYNN chart by TradingView

A closer look at Wynn’s daily chart shows why it has rebounded recently. This comeback happened after the shares formed a falling wedge pattern, which is a popular reversal sign. It broke out above the wedge on December 11th. 

The 50-day and the 100-day Exponential Moving Averages (EMA) are about to form a bullish crossover pattern. In most cases, this crossover is usually a confirmation of a bullish breakout. The Relative Strength Index (RSI) has also pointed upwards.

Therefore, the outlook for the Wynn Resorts share price is bullish, with the next point to watch being at $111.52, its highest swing on July 13th.

More By This Author:

Disney Q1 Earnings: Dividend Increased As DTC Loss Narrowed
Apple Hasn’t Given Up On Plans Of A Foldable Iphone
NYCB Has Reportedly Approached Investors For Capital