1. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 42
Wynn Resorts, Limited (NASDAQ:WYNN) is an American gambling company that operates high-end hotels and casinos. After four years of pandemic-related challenges, the company is now operating at full capacity. The second-quarter results, which set a new record for Adjusted Property EBITDAR, highlighted the ongoing strength across the business. It continues to focus on growth, with construction on Wynn Al Marjan Island in the UAE advancing rapidly. In addition, during the quarter, the company finalized a transaction to acquire its pro-rata share of land on Al Marjan Island Three, securing a substantial land bank for potential future development opportunities, either for Wynn Resorts or third parties aligned with Wynn Al Marjan.
Baron Funds also gave a positive outlook on Wynn Resorts, Limited (NASDAQ:WYNN)’s operations in its Q4 2023 investor letter. Here is what the firm has to say:
“The shares of Wynn Resorts, Limited (NASDAQ:WYNN), an owner and operator of hotels and casino resorts, declined modestly in the most recent quarter, in part due to concerns about economic weakness in China.
We remain optimistic about the multi-year prospects for the company. We believe the ongoing re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase 30% to 50% higher than where they have recently traded.
We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic.”
Wynn Resorts, Limited (NASDAQ:WYNN) generated $1.73 billion in revenues in the second quarter of 2024, which saw an 8.5% growth from the same period last year. Its net income for the quarter came in at $112 million, up from $105.2 million in the prior year period. The company ended the quarter with $2.38 billion available in cash and cash equivalents.
Wynn Resorts, Limited (NASDAQ:WYNN), one of the best casino stocks, currently pays a quarterly dividend of $0.25 per share. The stock has a dividend yield of 1.31%, as of September 12.
Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 42 funds owned stakes in Wynn Resorts, Limited (NASDAQ:WYNN), which remained unchanged from the previous quarter. These stakes have a total value of over $1 billion. With over 2.3 million shares, Fisher Asset Management was the company’s leading stakeholder in Q2.
Overall, Wynn Resorts, Limited (NASDAQ:WYNN) ranks first on our list. While we acknowledge the potential for WYNN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
