Valuation analysis for Wynn Resorts, Limited (NASDAQ:WYNN)

The macroeconomic environment we are in today portends that stocks which are richly valued pose exceptionally high degrees of risk and we consider Wynn Resorts, Limited (NASDAQ:WYNN) to be a prime candidate for decline.  Stock Traders Daily has issued a strong sell recommendation, which equates to a short recommendation accordingly.  This recommendation is based on valuation. 

With a growth rate that has been negative for the past few quarters, and a growth rate that is expected to be negative this year as well, a corresponding PE multiple, ex items, in excess of 30 times earnings can easily be considered to be excessive.  Earnings growth has been deteriorating, and although analysts expect earnings growth to come back by the end of 2017, that's a lifetime in terms of market cycles and plenty of time to see a major correction in not only the stock market but in WYNN as well.

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Our proprietary macro economic analysis is called The Investment Rate, it has predicted every major longer-term stock market and economic cycle in history in advance and it warns us that the rate of change in the amount of new money available to be invested into the stock market will decline materially this year and cause multiple contractions in the market itself, but that will be pronounced in stocks that already have excessive relative valuation.

Stocks like WYNN can fall dramatically as their multiple comes back into line with their earnings growth rate, and given the macroeconomic environment we see ahead that could even cause an overshoot to the downside.  Price targets are available.

 

Technical Summary

Term →Near Mid Long
Bias Strong Strong Neutral
P1 89.79 88.41 43.16
P2 96.59 98.82 72.18
P3 102.54 108.66 101.08

Long Term Trading Plans for WYNN

April 11, 2016, 12:13 pm ET

The technical Summary and associated Trading Plans for WYNN listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for WYNN. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

WYNN - (Long) Support Plan

Buy over 72.18 target 101.08 stop loss @ 71.92.
The technical summary data tells us to buy WYNN near 72.18 with an upside target of 101.08. This data also tells us to set a stop loss @ 71.92 to protect against excessive loss in case the stock begins to move against the trade. 72.18 is the first level of support below 98.78 , and by rule, any test of support is a buy signal. In this case, support 72.18 is being tested, a buy signal would exist.

WYNN - (Short) Resistance Plan

Short under 101.08 target 72.18 stop loss @ 101.34
The technical summary data is suggesting a short of WYNN as it gets near 101.08 with a downside target of 72.18. We should have a stop loss in place at 101.34 though. 101.08 is the first level of resistance above 98.78, and by rule, any test of resistance is a short signal. In this case, if resistance 101.08 is being tested, a short signal would exist.


WYNN Long Term Analysis


WYNN EPS Analysis

WYNN Dividend Chart

WYNN Revenue chart

WYNN Growth rate - Quarterly

WYNN Growth rate - Yearly

WYNN PE chart

WYNN PEG chart

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