As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the casino operator industry, including Wynn Resorts (NASDAQ:WYNN) and its peers.
Gaming and lodging stocks are under pressure as recession risks mount, BofA Securities reports. With tariffs weighing on GDP, analysts warn of a potential 3%–8% EBITDA hit. Hotel and timeshare sectors remain the most exposed, while REITs and Gaming OpCos face heightened earnings risk. Stocks are now trading at their lowest valuations since the COVID-19 and GFC downturns.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Monarch (NASDAQ:MCRI) and the best and worst performers in the casino operator industry.
Shares of luxury hotels and casino operator Wynn Resorts (NASDAQ:WYNN)
fell 7.8% in the morning session after China imposed a 34% tariff on all U.S. imports amid escalating trade war tensions. This was partly in response to the "reciprocal tariffs" announced by the Trump administration the previous day, with levies on Chinese goods estimated to be as high as 50%.
Over the past six months, Wynn Resorts’s shares (currently trading at $83.10) have posted a disappointing 18.6% loss while the S&P 500 was down 1.7%. This may have investors wondering how to approach the situation.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at PENN Entertainment (NASDAQ:PENN) and its peers.
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the casino operator industry, including Boyd Gaming (NYSE:BYD) and its peers.
According to a securities filing, Fertitta purchased 16,500 shares of Wynn on March 21 and March 24, with a price range of $80.99 to $84.93 per share, totaling approximately $1.38 million.
Most consumer discretionary businesses succeed or fail based on the broader economy. This sensitive demand profile can cause the industry to stumble when macro uncertainty enters the fray,
and over the past six months, its returns were flat.
This performance was similar to the S&P 500.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Gaming, betting and entertainment company Bally's Corporation (NYSE:BALY)
will be announcing earnings results tomorrow after market close. Here’s what to look for.
