Will Wall Street analysts foresee Wynn Resorts' stock heading upward or downward?
Wynn Resorts, a premier developer, owner, and operator of luxury integrated resorts, has managed to outperform both the S&P 500 Index and its sector over the past year, despite a Q2 2025 earnings miss.
In the last four quarters, Wynn Resorts' earnings history has been mixed, with one beat and three misses. However, this recent earnings miss has not dampened investor sentiment, with the company's shares continuing to perform well. Shares of Wynn Resorts fell marginally following its Q2 2025 results on Aug. 7, but they have since rebounded.
As of writing, the stock is trading below the mean price target of $121.38, but Barclays analyst Brandt Montour has reiterated a "Buy" rating on Wynn Resorts with a price target of $127. The consensus rating for Wynn Resorts is a "Strong Buy", with 11 "Strong Buy" ratings, one "Moderate Buy", and four "Holds".
The reasons behind Wynn Resorts' outperformance are likely multifaceted. For one, the company has a relatively low dividend yield of 0.9% with a stable annual dividend of $1.00, which may be attractive to income-focused investors given the sector's volatility. Despite a very high P/E ratio around 1428.88, suggesting high growth expectations embedded in the stock price, this dividend may offer a level of stability that investors find appealing.
Moreover, the broader macroeconomic environment and sector recovery, particularly in the luxury resort and casino space, might be supporting Wynn's valuation despite near-term earnings softness. For example, luxury resorts like Fontainebleau Las Vegas have been undergoing expansions and revivals since 2021, signaling growing demand in the sector.
Analysts' EPS expectations often lag market pricing when investors anticipate a longer-term turnaround or strategic improvements that have not yet translated into near-term earnings. In the case of Wynn Resorts, these improvements might include solid cash flow generation, improved visitation rates, and geographic footprint advantages that give it resilience relative to peers.
It's worth noting that Wynn Resorts holds more Forbes Travel Guide Five-Star awards than any other independent hotel company, a testament to the quality of its resorts. The company operates properties in Las Vegas, Macau, and Boston.
Over the past 52 weeks, WYNN stock has returned 47.3%, while the S&P 500 Index ($SPX) has rallied 14.3%. On a YTD basis, shares of WYNN are up 31%, compared to SPX's 9% gain. For the fiscal year ending in December 2025, analysts expect WYNN's EPS to decline 23.3% year-over-year to $4.62.
However, the Street-high price target of $133 implies a potential upside of 17.9% from the current price levels. This optimistic outlook suggests that investors remain confident in Wynn Resorts' ability to recover and grow in the coming months and years.
It's important to note that this article is for informational purposes only. Investors should conduct their own research or consult with a financial advisor before making investment decisions. The author, Sohini Mondal, does not have positions in any of the securities mentioned in this article.
[1] Yahoo Finance. (n.d.). Wynn Resorts, Limited (WYNN) Company Profile. Retrieved August 20, 2025, from https://finance.yahoo.com/quote/WYNN/profile [2] MarketWatch. (n.d.). Wynn Resorts Ltd. (WYNN) Stock Market News, Quotes, & Financial Reports. Retrieved August 20, 2025, from https://www.marketwatch.com/investing/stock/WYNN [3] CNBC. (n.d.). Fontainebleau Las Vegas is set to reopen in November. Retrieved August 20, 2025, from https://www.cnbc.com/2021/08/12/fontainebleau-las-vegas-is-set-to-reopen-in-november.html
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