Validea's Top Consumer Discretionary Stocks Based On Peter Lynch - 8/27/2024
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 27 2024
0mins
Should l Buy WYNN?
Source: NASDAQ.COM
Top Rated Consumer Discretionary Stocks: The article highlights top-rated Consumer Discretionary stocks according to Validea's P/E/Growth Investor model, emphasizing LENNAR CORP, MONARCH CASINO & RESORT INC, and FIVE BELOW INC, all receiving strong ratings of 91% based on their fundamentals and valuations.
Peter Lynch's Investment Strategy: It discusses Peter Lynch's investment philosophy, which focuses on finding reasonably priced stocks with strong earnings growth and solid balance sheets, while also providing a brief overview of the companies' operations within their respective industries.
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Analyst Views on WYNN
Wall Street analysts forecast WYNN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WYNN is 146.62 USD with a low forecast of 126.04 USD and a high forecast of 164.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 113.200
Low
126.04
Averages
146.62
High
164.00
Current: 113.200
Low
126.04
Averages
146.62
High
164.00
About WYNN
Wynn Resorts, Limited is a designer, developer, and operator of integrated resorts featuring hotel rooms, retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming. The Company owns and operates Wynn Las Vegas, Wynn Macau, Wynn Palace, Cotai, Wynn Mayfair, and operates Encore Boston Harbor. Wynn and Encore Las Vegas consist of two hotel towers with a total of 4,748 spacious hotel rooms, suites, and villas. Encore Boston Harbor features 671 hotel rooms and suites, a spa, 14 dining and lounge venues, a nightclub, and a ballroom and meeting spaces. Wynn Macau is in the Macau Special Administrative Region of the People's Republic of China with two luxury hotel towers. Wynn Palace offers 1,706 exquisite rooms, suites, and villas, 14 food and beverage outlets, meeting and convention space, an extensive boutique shopping esplanade, SkyCabs that traverse an eight-acre Performance Lake, an extensive collection of rare art, a spa and salon.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
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U.S. Jobs and Inflation Data Set for Release
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- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
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Wynn Resorts Again Named to FORTUNE's Most Admired Companies List
- Industry Leadership: Wynn Resorts has once again been recognized on FORTUNE Magazine's World's Most Admired Companies list, leading the Hotels, Casinos & Resorts category, which underscores its exceptional performance and influence within the industry.
- Excellence in Quality and Management: The company ranked first in Quality of Products/Services and People Management, reflecting its high scores in innovation and management quality, which further solidifies its market leadership position.
- Global Recognition: Wynn Resorts is acknowledged globally for its commitment to excellence, with CEO Craig S. Billings emphasizing that the dedication and passion of the team are key to the company's success, enhancing brand image and customer loyalty.
- Future Development Plans: Wynn Resorts is constructing an integrated resort in Ras Al Khaimah, UAE, set to open in 2027, which will offer 1,542 rooms and various luxury amenities, further expanding its global market presence and business footprint.
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Impact of Prediction Markets: Prediction markets are emerging as a competitive threat to traditional sportsbooks, potentially reshaping the betting landscape.
Performance of Betting Operators: Despite the rise of prediction markets, at least one betting operator is thriving and maintaining its success in the industry.
See More
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- Transformation Plans at Target: Target, with nearly 2,000 stores, faces inventory challenges and market pressures, yet its 54-year history of dividend growth and a $5 billion investment plan under the new CEO could help revitalize performance and attract investor interest.
- Challenges in Cleaning Products Market: Clorox, known for brands like Kingsford and Hidden Valley Ranch, has seen stock price declines due to reduced post-pandemic demand and a cyberattack, but its 4.4% dividend yield and improving business efficiencies may position it as a future growth stock.
- Attractive Dividend Yields: All three companies demonstrate strong dividend growth potential, with Realty Income's 5.3% yield, Target's 4.3%, and Clorox's 4.4%, all exceeding market averages, appealing to investors seeking stable income.
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- REIT Advantages: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Wynn Resorts, and a high occupancy rate of nearly 99% ensures steady cash flows, enhancing its appeal as the 'monthly dividend company.'
- Dividend Growth Potential: Realty Income has paid monthly dividends since 1994, with an annual payout of $3.24 per share yielding 5.3%, significantly above the S&P 500's average of 1.1%, making it attractive even in a high-interest-rate environment.
- Retail Giant Challenges and Opportunities: Target's nearly 2,000 stores cover over 75% of U.S. consumers, and despite challenges in inventory management and market appeal, its 54 years of dividend growth history and 4.3% yield continue to attract investor interest.
- Market Potential for Cleaning Products: Clorox's annual dividend stands at $4.96 per share with a 4.4% yield, and despite facing challenges from a cyberattack and inflation, brand loyalty and an upcoming ERP implementation are expected to enhance future profitability.
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- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
Wynn Resorts Again Named to FORTUNE's Most Admired Companies List
- Industry Leadership: Wynn Resorts has once again been recognized on FORTUNE Magazine's World's Most Admired Companies list, leading the Hotels, Casinos & Resorts category, which underscores its exceptional performance and influence within the industry.
- Excellence in Quality and Management: The company ranked first in Quality of Products/Services and People Management, reflecting its high scores in innovation and management quality, which further solidifies its market leadership position.
- Global Recognition: Wynn Resorts is acknowledged globally for its commitment to excellence, with CEO Craig S. Billings emphasizing that the dedication and passion of the team are key to the company's success, enhancing brand image and customer loyalty.
- Future Development Plans: Wynn Resorts is constructing an integrated resort in Ras Al Khaimah, UAE, set to open in 2027, which will offer 1,542 rooms and various luxury amenities, further expanding its global market presence and business footprint.
See More
MGM Shares Surge Following Sports Betting Performance: Will It Resist Prediction Market Challenges?
Impact of Prediction Markets: Prediction markets are emerging as a competitive threat to traditional sportsbooks, potentially reshaping the betting landscape.
Performance of Betting Operators: Despite the rise of prediction markets, at least one betting operator is thriving and maintaining its success in the industry.
See More
Dividend Growth Potential in Consumer Stocks
- Stability of REITs: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Dollar General, and a 99% occupancy rate ensures steady cash flows, with expectations for profit and stock price increases as interest rates decline.
- Transformation Plans at Target: Target, with nearly 2,000 stores, faces inventory challenges and market pressures, yet its 54-year history of dividend growth and a $5 billion investment plan under the new CEO could help revitalize performance and attract investor interest.
- Challenges in Cleaning Products Market: Clorox, known for brands like Kingsford and Hidden Valley Ranch, has seen stock price declines due to reduced post-pandemic demand and a cyberattack, but its 4.4% dividend yield and improving business efficiencies may position it as a future growth stock.
- Attractive Dividend Yields: All three companies demonstrate strong dividend growth potential, with Realty Income's 5.3% yield, Target's 4.3%, and Clorox's 4.4%, all exceeding market averages, appealing to investors seeking stable income.
See More
Stable Dividend Opportunities in Consumer Stocks
- REIT Advantages: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Wynn Resorts, and a high occupancy rate of nearly 99% ensures steady cash flows, enhancing its appeal as the 'monthly dividend company.'
- Dividend Growth Potential: Realty Income has paid monthly dividends since 1994, with an annual payout of $3.24 per share yielding 5.3%, significantly above the S&P 500's average of 1.1%, making it attractive even in a high-interest-rate environment.
- Retail Giant Challenges and Opportunities: Target's nearly 2,000 stores cover over 75% of U.S. consumers, and despite challenges in inventory management and market appeal, its 54 years of dividend growth history and 4.3% yield continue to attract investor interest.
- Market Potential for Cleaning Products: Clorox's annual dividend stands at $4.96 per share with a 4.4% yield, and despite facing challenges from a cyberattack and inflation, brand loyalty and an upcoming ERP implementation are expected to enhance future profitability.
See More
