We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Melco (MLCO) Hits 52-Week High on NUWA Launch Announcement
Read MoreHide Full Article
Shares of Melco Resorts & Entertainment Limited (MLCO - Free Report) hit a 52-week high of $29.50 on Dec 27, before closing a tad lower at $29.23.
The company’s shares have charted a solid trajectory in recent times, appreciating over 83.9% year to date, ahead of the industry’s gain of roughly 44.8%.
Notably, the company has witnessed a 2.3% jump in share price against the industry’s loss of 0.6% since the day it announced the launch of its luxury hotel brand, NUWA. Melco will launch NUWA in Macau and Manila on Jan 16, 2018. The brand launch is in line with the company’s plan to present phase III of City of Dreams Macau in the second quarter of 2018.
Let’s see how the NUWA launch may boost the company’s performance.
City of Dreams Well Poised on New NUWA Luxury Hotel Brand
City of Dreams, Melco’s flagship property, is under the third phase of development and has been raking in significant revenues. In fact, in the first nine months of 2017, City of Dreams witnessed 2.6% year-over-year growth in revenues per available room (RevPAR). In the same time frame, occupancy per available room increased 200 basis points (bps) from the year-ago period.
We believe that the addition of NUWA will significantly strengthen Melco’s operations in City of Dreams. The company believes that an increase in luxury hotel room inventory will bode well for the property's gaming operations. Further, growth at the property will be driven by enhanced guest experience.
Development Plans Boost Investor Confidence
In this phase of development, Melco plans to open The Morpheus Hotel, which will add almost 800 luxury hotel rooms and villas to the property. Additionally, the company plans to rebrand The Count:Down into a new hotel concept that will enrich guest experience in City of Dreams.
Melco has been actively responding to a rapidly evolving market and has capitalized on significant VIP business and cash flow with the expansion of its gaming segment. These new additions to City of Dreams will help Melco continue with its core business strategy of pursuing quality and in turn driving traffic.
Analysts Optimistic As Well
For 2018, two estimates have gone higher for Melco while one has moved lower in the last 60 days. The trend has been pretty favorable too, with estimates rising from 94 cents a share 60 days ago to $1.05 per share currently, marking an increase of 11.7%. This shows that analysts are positive on the stock’s upside potential, which is expected to be driven by the robust performance of City of Dreams.
Current-year expected earnings growth rate for Churchill Downs, Wynn Resorts and Las Vegas Sands is expected to be 26.4%, 58% and 23.5%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Melco (MLCO) Hits 52-Week High on NUWA Launch Announcement
Shares of Melco Resorts & Entertainment Limited (MLCO - Free Report) hit a 52-week high of $29.50 on Dec 27, before closing a tad lower at $29.23.
The company’s shares have charted a solid trajectory in recent times, appreciating over 83.9% year to date, ahead of the industry’s gain of roughly 44.8%.
Notably, the company has witnessed a 2.3% jump in share price against the industry’s loss of 0.6% since the day it announced the launch of its luxury hotel brand, NUWA. Melco will launch NUWA in Macau and Manila on Jan 16, 2018. The brand launch is in line with the company’s plan to present phase III of City of Dreams Macau in the second quarter of 2018.
Let’s see how the NUWA launch may boost the company’s performance.
City of Dreams Well Poised on New NUWA Luxury Hotel Brand
City of Dreams, Melco’s flagship property, is under the third phase of development and has been raking in significant revenues. In fact, in the first nine months of 2017, City of Dreams witnessed 2.6% year-over-year growth in revenues per available room (RevPAR). In the same time frame, occupancy per available room increased 200 basis points (bps) from the year-ago period.
Melco Crown Entertainment Limited Revenue (TTM)
Melco Crown Entertainment Limited Revenue (TTM) | Melco Crown Entertainment Limited Quote
We believe that the addition of NUWA will significantly strengthen Melco’s operations in City of Dreams. The company believes that an increase in luxury hotel room inventory will bode well for the property's gaming operations. Further, growth at the property will be driven by enhanced guest experience.
Development Plans Boost Investor Confidence
In this phase of development, Melco plans to open The Morpheus Hotel, which will add almost 800 luxury hotel rooms and villas to the property. Additionally, the company plans to rebrand The Count:Down into a new hotel concept that will enrich guest experience in City of Dreams.
Melco has been actively responding to a rapidly evolving market and has capitalized on significant VIP business and cash flow with the expansion of its gaming segment. These new additions to City of Dreams will help Melco continue with its core business strategy of pursuing quality and in turn driving traffic.
Analysts Optimistic As Well
For 2018, two estimates have gone higher for Melco while one has moved lower in the last 60 days. The trend has been pretty favorable too, with estimates rising from 94 cents a share 60 days ago to $1.05 per share currently, marking an increase of 11.7%. This shows that analysts are positive on the stock’s upside potential, which is expected to be driven by the robust performance of City of Dreams.
Zacks Rank and Stocks to Consider
Melco carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the industry are Churchill Downs Incorporated (CHDN - Free Report) , Wynn Resorts, Limited (WYNN - Free Report) and Las Vegas Sands Corp. (LVS - Free Report) . While Churchill Downs sports a Zacks Rank #1 (Strong Buy), Wynn Resorts and Las Vegas Sands carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Current-year expected earnings growth rate for Churchill Downs, Wynn Resorts and Las Vegas Sands is expected to be 26.4%, 58% and 23.5%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>