Should I Buy Wynn Resorts (WYNN)? Finance YouTuber Analysis

The YouTuber identifies Wynn Resorts as a consumer discretionary stock poised for a significant run. He believes that once the current semiconductor stock frenzy subsides, capital will flow into undervalued consumer discretionary names, leading to an '18 to 24-month insane bull run'. He also hints at upcoming hype related to a Middle East property opening.

“Wind Resorts down 18 and a half%. That was just that win Friday night. Man, that place was Oh, was it busy? Oh, was it busy? I got stories for you. I can't tell you the stories, but let's just say stupid money was being spent out there, okay?”

The YouTuber states that Wynn Resorts is a 'hated stock' under $100, which he considers a buying opportunity. He highlights the company's strong performance in Macau with high occupancy and plans for a new tower, as well as a busy Vegas property, indicating the company is 'clicking on all cylinders'.

“Anytime wind goes under 100, it's always a pickup. Middle East property, that's going to be an incredible opportunity for this company.”

The analyst anticipates Wynn Resorts will report strong results that exceed Las Vegas Sands' performance, similar to MGM. Wynn caters to high-end gamblers in Macau, which is expected to drive better growth than the mass-market focus of Las Vegas Sands. The analyst will be watching their upcoming earnings report.

“some of the other players that we're going to see report in the next few weeks like MGM like wind resorts are probably going to have results that exceed what we saw from sans's China”

The analyst believes Wynn Resorts is an attractive investment due to its strong earnings report, profitability, and significant cash flow generation, particularly from Las Vegas and improving Macau operations. The company's Enterprise Value to EBITDA multiple of under 10 is considered a good valuation, with potential for further growth as Macau recovers and the UAE resort comes online. The company is also deleveraging by buying back debt.

“The Enterprise Value to ebitda multiple of under 10 I think is ultimately a really attractive price point with that cash management can do things like pay dividends historically win has paid a special dividend they could buy back debt like they are doing there's some expansion ability but not a lot of expansionability and remember that we still haven't seen Macau come back to full strength there's still the potential for continued growth in Macau so the current valuation the current cash flow could get better over the next couple of years I think that's worth keeping in mind.”

The YouTuber recommends Wynn Resorts as a buy, citing the rapid recovery of the Macau gaming market after China lifted its zero-COVID policy. He points to Macau's significant quarter-over-quarter growth in gambling revenue and its potential to return to pre-pandemic levels, making Wynn's two casinos there a phenomenal cash flow machine and a strong growth story for the next few years.

“if Revenue recovers to where we saw it just a few years ago this could be a phenomenal cash flow machine a phenomenal growth story for the next few years and I think even the second quarter is going to be a lot better than investors are expecting”

The YouTuber recommends Wynn Resorts, primarily focusing on the recovery of its Macau operations. He notes that while Las Vegas revenue has surpassed pre-pandemic levels, Macau is still significantly down but is showing signs of recovery with the end of China's zero-COVID policy. He anticipates strong growth in Macau throughout 2023 and expects the company to return to positive net income by year-end.

“I really like what the future looks like there and I think what we see now in negative net income is actually going to turn to a positive net income by the end of this year and this is a real growth story long term”

Hoium identifies Wynn Resorts as another company with significant exposure to Macau, holding two casinos there. He believes that a strong recovery in Macau's gambling market, potentially exceeding pre-pandemic revenue, would lead to increased cash flow for Wynn, benefiting shareholders.

“The other ones that have exposure there would be Wynn Resorts which has two casinos...”

The analyst recommends Wynn Resorts as part of a basket of stocks to capitalize on the expected recovery of the Asian gambling market, especially Macau. They believe the region's reopening will provide a strong tailwind for companies with significant exposure there.

“Melco Resorts, Wind Resorts are the three that have kind of the most exposure and then MGM Resorts is the other one that has the least exposure...”

The analyst views Win Resorts as a recovery play, anticipating a significant rebound in Macau's gambling revenue following China's zero-COVID policy reversal. They highlight that Macau was historically much larger than Las Vegas and expect a similar surge in demand as seen in Las Vegas post-lockdown, positioning the company for strong growth in 2023 or 2024.

“I think Macau's going to have a really good year, it might not be in 2023 but it might be in 2024.”

The analyst believes Wynn Resorts could double if Macau's gambling revenue recovers to 2019 levels, which is expected if the Chinese economy opens up and zero-COVID policies are relaxed in 2023. The current stock price does not reflect this potential upside.

“I think Macau would be a region that really benefits three stocks that I think could reasonably double in 2023 and 2024 because of the benefit of Macau is Las Vegas Sands, Melco Resorts and Wind Resorts.”

Travis Hoium views Wynn Resorts as a 'massive call option' due to its Macau operations. While current Macau revenues are near zero due to China's lockdowns, the strong performance of its Las Vegas and Boston properties (exceeding pre-pandemic expectations) provides a solid base. He believes that if Macau reopens and sees a similar surge in demand as Las Vegas did post-lockdown, it represents significant upside for the company.

“Macau is like a massive call option for for this company and and the few companies that have operations there if it comes back in any meaningful way... it could be crazy.”