Ken Fisher’s Top 10 Growth Stock Picks with 30+% Revenue Growth

6. Wynn Resorts, Limited (NASDAQ:WYNN)

Number of Hedge Fund Investors  in Q1 2024: 42

3 Yr Revenue Growth: 46.07%

Fisher Investments’ Q1 2024 Stake: $415 million

Wynn Resorts, Limited (NASDAQ:WYNN) is a diversified casino company that operates properties in Las Vegas and Macao. Along with Vegas, the firm is also expanding its presence in Boston by expanding its current Boston Harbor resort and in New York by applying for a gaming license. Additionally, Wynn Resorts, Limited (NASDAQ:WYNN) also has its eyes set on the UAE, which is one of the world’s biggest tourism destinations. The firm aims to build a 1,500 room hotel and an accompanying casino, which shows that it has learned from the lessons of the coronavirus that impacted its business heavily due to restrictions in China. At the same time, even though Wynn Resorts, Limited (NASDAQ:WYNN) is expanding its global footprint, it relies heavily on China for its revenue. On this front, several headwinds including lax cost control, lower holiday spending, and strict regulations for money transfers can prove to be headwinds for the firm as they reduce the flow of funds in the region.

Commenting on the Macao expenditures, here’s what Wynn Resorts, Limited (NASDAQ:WYNN)’s management had to say during the Q1 2024 earnings call:

“We’ve talked quite a bit about OpEx and how we’ve been very disciplined in managing it and how we’ve been able to accommodate the non-gaming OpEx that we have to spend to meet our concession commitments. So we’ve been really disciplined. We had OpEx per day of $2.63 million in Q1. So it’s still well below Q1 ’19 levels, and it’s only up 3% sequentially. It was a big Q in terms of what we call tentpole events. And it’s — obviously, the OpEx increase is well below the 10% we’ve had sequentially in operating revenue. So we had — we were really pleased with the flow-through there. Going forward, we’re going to continue to be really disciplined around OpEx. We have good line of sight to the events calendar and how we’ll continue to incorporate that.

So as we have our EBITDA margin at both properties above Q1 ’19 levels and our OpEx were well controlled, we really expect revenue mix to be the key driver of margins going forward. We’re going to have some quarter-to-quarter variation as we see different events on the calendar, and we continue to roll out programming. But we feel pretty good about what we’ve managed to land with OpEx. And we see potential for some quarters to be slightly inside of that $2.63 million. And maybe in a bigger quarter, it might be slightly outside of that, but overall, we’re in a good place.”