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Don't Bet on this Casino Stock to Recover in June

There's plenty of optimism to be unwound

Deputy Editor
Jun 3, 2024 at 12:43 PM
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Shares of Wynn Resorts, Limited (NASDAQ:WYNN) are a ways away from their April 4, nearly 52-week high of $110.38. In fact, WYNN is 1.1% lower at 93.84 at last glance, now down 7.9% this quarter and pulling back to its year-to-date breakeven level. What's more, a bout of seasonality is looming that could send Wynn Resorts stock lower still.

WYNN Chart June 032024

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, Wynn Resorts is the third worst stock on the S&P 500 Index (SPX) to own in June, looking back over the past 10 years. The shares averaged a loss of 3.1% for the month over the last decade, and finished the month lower seven times.

Worst SPX Stock June 032024

As for the brokerage bunch, there's plenty of optimism to be unwound. Of the 14 analysts in coverage, 10 recommend a "strong buy" rating. Plus, WYNN is ripe for a round of price adjustments, given the 12-month consensus price target of $124.935 is a 32.7% premium to current levels.

A shift in the options pits could also weigh on the security. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Wynn Resorts stock sports a 50-day call/put volume ratio of 5.89, which ranks higher than 98% of readings from the past 12 months. 

Options look to be an attractive route to go when weighing in on the stock. Specifically, the equity’s Schaeffer's Volatility Index (SVI) of 25% ranks in the low 7th percentile of the last 12 months. What's more, its Schaeffer's Volatility Scorecard (SVS) is incredibly low right now, sitting at 9 out of 100. In simpler terms, the security is a prime selling candidate. 

 

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