2-Star Stocks Poised to Plunge: Wynn Resorts?

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Wynn Resorts (NAS: WYNN) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Wynn's business and see what CAPS investors are saying about the stock right now.

Wynnfacts

Headquarters (founded)

Las Vegas (2002)

Market Cap

$14.0 billion

Industry

Casinos and gaming

Trailing-12-Month Revenue

$5.2 billion

Management

Founder/Chairman/CEO Stephen Wynn
CFO Matt Maddox

Return on Equity (average, past 3 years)

14.8%

Cash/Debt

$1.9 billion / $3.1 billion

Dividend Yield

1.7%

Competitors

Caesars Entertainment
Las Vegas Sands
MGM Resorts International

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 29% of the 1,239 members who have rated Wynn believe the stock will underperform the S&P 500 going forward.

Late last year, one of those bears, Jeffrey2012, voiced concerns over Wynn's big bet on Macau:

This feverish pitch of ever record setting revenues coming from Macau will come to an end sooner rather than later. There is no way that Macau and China is going to continue their hot growth without some sort of issues. In fact, there are signs everywhere from the credit squeeze in Wenzhou to the plummeting stock market. Sooner, rather than later is this going to manifest in these wealthy high rollers who are probably living the high life on shadow banking loans.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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