Wynn stock currently trades at $91 per share, roughly 35% below its pre-inflation shock high of $140 seen on March 17, 2021. The stock has been impacted by the Macau operations, which saw business largely collapse over 2021 and 2022, due to China’s stringent Covid-19 restrictions which hurt tourist inflows into the region. The stock was trading at a low of about $52 in June 2022 and has jumped about 74% from these levels to almost $91 currently as things recovered in Macau of late, with China easing travel restrictions and pent-up demand for gaming activities driving a recovery. For perspective, the company’s operating revenue for Q2 rose 49% to $1.60 billion, with net income attributable to Wynn standing at $105.2 million, compared to a net loss of $130.1 million a year ago.
Interestingly, Wynn stock has had a Sharpe Ratio of 0.1 since early 2017, lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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