Back to top

Image: Bigstock

Wynn Resorts (WYNN) Stock up on Expansion Plans in Michigan

Read MoreHide Full Article

Wynn Resorts, Limited (WYNN - Free Report) recently announced its plans to open its casino and sports betting app — WynnBET — in Michigan, later this month. Following the announcement, shares of the company have gained 2.7% during trading hours on Jan 20, 2021.

With increase in demand for iGaming industry, the company is trying to expand presence across more than a dozen other large jurisdictions. Notably, the company entered the Michigan market through a multi-year deal with GAN and the Sault Ste. Marie Tribe of Chippewa Indians.

In this regard, Craig Billings, president of Wynn Resorts, stated, "With its large and highly engaged community of sports and casino fans, we are confident that Michigan will become a meaningful market for us."

Increased Focus On Online Betting

According to the American Gaming Association, about $150 billion is wagered illegally on sports through the likes of bookies and offshore sites every year. Data Bridge Market Research projects global sports betting market to witness a CAGR of 9.99% in the forecast period of 2020 to 2027. Growth in the gambling market is likely to be driven by increase in smartphone adoption and improving Internet infrastructure globally.

Notably, Wynn Resorts is strengthening its position in the online sports betting category with current availability in New Jersey and Colorado and secured market access in Indiana, Iowa, Nevada, Massachusetts. It also stated that licensure in Tennessee and Virginia are under progress.

Price Performance

Shares of Wynn Resorts have gained 44% in the past three months compared with the industry’s 22.8% growth. Notably, the company is benefitting from improved non-gaming revenues and expansion in domestic markets. Despite the coronavirus pandemic, the company is confident about prospects in Macau. It also has enough liquidity to tide over the current scenario.

However, coronavirus related woes persist. Although most of the casinos in Macau have resumed operations after the pandemic-induced shutdown, the company is still witnessing low visitation. Meanwhile, earnings estimates for 2021 have declined in the past 30 days, depicting analysts’ concern regarding the stock growth potential.

Zacks Rank & Key Picks

Wynn Resorts currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Zacks Consumer Discretionary sector include Red Rock Resorts, Inc. (RRR - Free Report) , Vista Outdoor Inc. (VSTO - Free Report) and TEGNA Inc. (TGNA - Free Report) each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

2021 earnings for Red Rock and Vista Outdoor are expected to surge 172.9% and 1,033.3%, respectively.

TEGNA Holdings has a three-five year earnings per share growth rate of 10%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Published in