Can Wynn Resorts break out of downward trend with earnings announcement?
Casino operator Wynn Resorts (Nasdaq: WYNN) is set to report third quarter earnings results on November 6 and the stock will be looking to break out of a downward trend with the results.
The stock has been trending lower since peaking in April and if we connect the high from April and July, we get a downward sloped trend line that is currently just below $130. The daily overbought/oversold indicators are in overbought territory and the daily stochastic readings made a bearish crossover on October 30.
The chart shows the downward sloped trend line, but it also shows a pretty strong support level at the $102.50 level. The stock has dropped to this area at the beginning of June, in mid-August, and again in early October. It would take a pretty big drop to get the stock back down to this area after the earnings report, but that could happen over the course of the coming weeks.
You can attribute the decline in the stock price to the fundamentals of the company. The company saw earnings decline by 6% in the second quarter and analysts expect earnings to decline by 17% for 2019 as a whole. As for the third quarter, the consensus estimate is for the company to report EPS of $0.90 and that is a huge drop from last year's third quarter EPS of $1.68.
Revenue grew by 3% in the second quarter and it has grown by 21% per year over the last three years. Analysts expect revenue to grow by 0.7% for 2019.
Wynn's management efficiency measurements are well above average with a return on equity of 46.9% and a profit margin of 14.5%. When you combine these figures with the sales growth for the company, you get an SMR rating from Tickeron of 37. This indicates that the company is slightly above average in terms of sales growth, profit margin, and return on Equity. The rating is based on comparative analysis of weighted sales, income margin and return on equity values compared against S&P 500 index constituents.
Unfortunately for Wynn this is one of the few indicators where the company ranks above average. The Tickeron Valuation Rating is at 74 and that indicates that the company is slightly overvalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.
The Tickeron Profit vs. Risk Rating for Wynn is 100, indicating that the returns do not compensate for the risks. Wynn’s unstable profits reported over time resulted in significant drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating for the industry is 75, placing this stock worse than average.
When it comes to earnings announcements, I have found that the sentiment indicators become more important than usual as they tell you what the investment community expects. If expectations are too high, the company has a hard time satisfying everyone. If the expectations are low, it's easy to impress investors.
Unfortunately for Wynn, the sentiment is rather bullish at this time. There are 18 analysts covering the stock at this time with 13 "buy" ratings and five "hold" ratings. This puts the buy percentage at 72.2%. This is in the average range, but with the stock trending lower and the fundamentals being rather weak, that might be too high. The short interest ratio is a paltry 1.8 so the odds of a short covering rally are rather low.
WYNN sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for WYNN moved above the 200-day moving average on July 01, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 18, 2025. You may want to consider a long position or call options on WYNN as a result. In of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WYNN just turned positive on June 23, 2025. Looking at past instances where WYNN's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
WYNN moved above its 50-day moving average on June 09, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WYNN advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WYNN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
WYNN broke above its upper Bollinger Band on July 01, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. WYNN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: WYNN's P/B Ratio (103.093) is very high in comparison to the industry average of (12.790). P/E Ratio (16.859) is within average values for comparable stocks, (65.598). Projected Growth (PEG Ratio) (1.301) is also within normal values, averaging (1.549). Dividend Yield (0.009) settles around the average of (0.077) among similar stocks. P/S Ratio (1.841) is also within normal values, averaging (3.547).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WYNN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a high-end casinos & resorts company
Industry CasinosGaming
Advertisement