WYNN Up 14% In A Week. Do You Buy Or Wait?
Wynn Resorts (WYNN) stock is up 14.3% in 5 trading days. Already own the stock? Might want to consider booking some profit as there is risk – specific to downturn resilience. Consider the following data:
- Size: A $13 Bil company with $7.0 Bil in revenue currently trading at $126.74.
- Fundamentals: Last 12 month revenue growth of -1.9% and operating margin of 18.2%.
- Liquidity: Has Debt to Equity ratio of 0.9 and Cash to Assets ratio of 0.2
- Valuation: Currently trading at P/E multiple of 34.2 and P/EBIT multiple of 11.8
- Has returned (median) 44.8% within a year following sharp dips since 2010. See WYNN Dip Buy Analysis.
While we like to ride the momentum if the fundamentals check out – for WYNN, see Buy or Sell WYNN Stock – we are vary of bull traps. Specifically, it is worth trying to answer if things get really bad, and WYNN drops 20-30% to $88.72 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Wynn Resorts (WYNN) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Below are the details, but before that, as a quick background: WYNN provides integrated resorts featuring extensive casino spaces with numerous table games, slot machines, private gaming salons, and sky casinos across multiple locations.
2022 Inflation Shock
- WYNN stock fell 62.8% from a high of $140.00 on 17 March 2021 to $52.02 on 23 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $126.74 on 28 August 2025 $126.74
| WYNN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -62.8% | -25.4% |
| Time to Full Recovery | Not Fully Recovered days | 464 days |
2020 Covid Pandemic
- WYNN stock fell 71.7% from a high of $152.21 on 16 January 2020 to $43.02 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
| WYNN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -71.7% | -33.9% |
| Time to Full Recovery | Not Fully Recovered days | 148 days |
2018 Correction
- WYNN stock fell 54.3% from a high of $201.51 on 10 May 2018 to $92.01 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
| WYNN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -54.3% | -19.8% |
| Time to Full Recovery | Not Fully Recovered days | 120 days |
2008 Global Financial Crisis
- WYNN stock fell 91.1% from a high of $172.90 on 29 October 2007 to $15.40 on 6 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 21 October 2013
| WYNN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -91.1% | -56.8% |
| Time to Full Recovery | 1690 days | 1480 days |
Worried that WYNN could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.