Wynn Resorts Stock Jumps 6% in a Month: Should You Buy or Hold?

Shares of Wynn Resorts, Limited WYNN have gained 5.7% in the past month, outperforming the Zacks Gaming industry’s 5.1% growth. Meanwhile, the broader Zacks Consumer Discretionary sector has risen 7.1% and the S&P 500 has gained 5.4%.

Notably, WYNN has outshined key industry rivals, including PENN Entertainment, Inc. PENN, Sportradar Group AG SRAD and Caesars Entertainment CZR in the past month. Notably, PENN Entertainment, Sportradar Group and Caesars Entertainment’s shares have declined 3.1%, 0.5% and 4.9%, respectively, in the said period.

WYNN Stock Price Performance

WYNN Stock Trades Above 50 & 200-Day Moving Averages

Technical indicators suggest continued strong performance for Wynn Resorts. As of Tuesday, WYNN was trading above its 50-day moving average of $83.49 and its 200-day moving average of $86.41. The technical strength underscores positive market sentiment and confidence in the company’s financial health and prospects.

Factors Favoring WYNN’s Growth Prospects

The company is benefiting from stable mass gaming trends in Macau and steady non-gaming performance in Las Vegas. In the first quarter of 2025, the company reported healthy demand with a 4% year-over-year increase in total casino revenues despite the absence of the Super Bowl. Slot performance remained strong, supported by prior investments in premium slot areas and staffing. When excluding the Super Bowl weekend from the prior-year period, Wynn Resorts posted year-over-year growth across key metrics, including drop, handle, RevPAR, non-gaming revenues and EBITDA.

WYNN is focusing on high-quality offerings and expansion into high-growth markets. In the first quarter of 2025, the company opened the Gourmet Pavilion food hall at Wynn Palace, which increased daily restaurant covers by approximately 2,400. This rise indicates additional visitor traffic to the property.

In addition, continued progress on development projects in the UAE is expected to support growth. Wynn Resorts is advancing construction on the Wynn Al Marjan Island project, now reaching the 47th floor. The company views the UAE as a growing gaming market with significant potential. To strengthen its position, Wynn Resorts acquired Aspinalls in London, aiming to connect with high-value customers across both locations.

The company’s targeted reinvestments and shareholder-focused capital allocation reflect its approach to maintaining profitability. In the first quarter, Wynn Resorts repurchased 2.36 million shares for about $200 million. This, along with regular dividends, demonstrates the company’s ongoing commitment to returning value to shareholders.

WYNN Trades at a Discount

The company is currently trading at a discount to industry peers on a forward 12-month price-to-earnings (P/E) ratio basis. The discounted valuation indicates that despite the recent stock price increase in the past month, it remains an attractive option for investors looking for a suitable entry point.

Tariff Challenges Affect Operations & Investments

Wynn Resorts is navigating the uncertainties posed by tariffs, which can affect both operating and capital expenses. The company expects limited impacts on operating expenses, mainly in the U.S. food and beverage segment. It is pursuing alternative sourcing to address these pressures.

The potential effects of tariffs on capital expenditure are more significant. Several ongoing projects have been delayed due to higher tariff rates. The company remains focused on managing these risks and adjusting its sourcing and spending strategies as needed.

Estimate Revision Weighs on WYNN Stock

Wall Street analysts have lowered earnings expectations for Wynn Resorts. Over the past 30 days, earnings estimates for 2025 have been revised downward, reflecting a 22.1% year-over-year decline.

Conclusion

Wynn Resorts is seeing steady performances in key markets like Macau and Las Vegas, and continues to advance its UAE development. Expansion into high-growth markets, along with targeted reinvestments and shareholder-focused capital allocation, supports its long-term strategy. Given its discounted valuation, this Zacks Rank #3 (Hold) stock may appeal to investors looking for long-term value.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, Wynn Resorts has faced some pressure recently due to industry challenges and slower customer spending. While it may be prudent for investors to monitor the stock for further updates, those already holding shares can consider maintaining their position, given the company’s ongoing efforts to strengthen its business.

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This article originally published on Zacks Investment Research (zacks.com).

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