Wynn Resorts(WYNN) ZACKS·2025-03-18 17:00Core Viewpoint - Wynn Resorts has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements [3]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to significant stock transactions that affect price movements [3]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade for Wynn suggest an improvement in the company's underlying business, which could lead to higher stock prices [4]. Importance of Earnings Estimate Revisions - Empirical research supports the correlation between earnings estimate revisions and near-term stock movements, making it beneficial for investors to track these revisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, providing a reliable investment decision-making tool [5][6]. Specific Earnings Estimates for Wynn - Wynn is projected to earn $5.30 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -12% [7]. - Over the past three months, the Zacks Consensus Estimate for Wynn has increased by 13.2%, indicating positive sentiment among analysts [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4,000 stocks, with only the top 20% receiving favorable ratings [8][9]. - The upgrade of Wynn to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].