Wynn Resorts has faced significant challenges, with its stock down over 27% year-to-date and more than 46% from its 2025 highs. However, recent performance indicates a turnaround, especially in the U.S. market where the company's EBITDA margin in Las Vegas has outperformed its Macau operations.
Management has responded by increasing capital expenditures in Las Vegas, leading to profits that have doubled compared to pre-pandemic levels. Additionally, improvements in Macau are attracting premium customers, supporting Wynn's expansion plans. Valuation metrics show that WYNN is trading near its five-year historical averages, justifying a premium over the broader gaming industry.
Despite a recent downtrend, technical indicators suggest that the stock may be poised for recovery. With the next earnings report not due until February, traders are advised to employ a 'wheel strategy'—selling cash-covered puts to collect premiums and potentially acquiring shares at a discount, followed by selling covered calls to generate income.
This approach allows investors to engage with a strong operator while managing risk effectively