n spite of Macau gaming revenue growing steadily throughout March, casino stocks such as Las Vegas Sands and MGM Resorts International have presented slight decrease as the S&P 500 index and Dow Jones followed the Nasdaq composite lower. Wynn Resorts and Melco Resorts & Entertainment are still close to buying points. Macau, which is the country's only legal casino hub, saw sales shoot up by 22.2% to 26 billion patacas ($3.2 billion) which easily topped views of 13% to 18% growth.
The Macau gaming revenue report is good news for Wynn Resorts, which boasts the Wynn Palace and Wynn Macau casino resorts in the region. But Wynn shares closed down 0.75% at 181.00 on the stock market today after briefly rising to 186.29. Wynn Resorts stock has been forming a cup with handle base over the past eight weeks and is nearing a correct entry point of 192.85, MarketSmith analysis shows.
Wynn's relative strength line, which tracks a stock's performance vs. the S&P 500 index, is also at its highest level in three years. Wynn Resorts has an excellent IBD Composite Rating of 96, putting it in the top 4% of stocks, and is the leader of the Leisure-Gaming/Equipment Group.
The region helped Wynn Resorts nearly triple its earnings in the fourth quarter. Earnings per share jumped to $1.40, beating Zacks estimates for $1.36, while net sales jumped 30% to $1.689 billion, above views for $1.536 billion.
The stock had already gotten a boost late last month when founder Steve Wynn agreed to sell his remaining stake in the casino-and-resort giant he led, and then he left after allegations of sexual misconduct.
Wynn Resorts also said that it plans to sell 5.3 million new shares to Galaxy Entertainment Group in a public offering at $175 a share, a deal that will bring the casino company $927.5 million. Galaxy also operates resorts in Macau.
Melco Resorts & Entertainment
The stock, whose China properties include City of Dreams Macau, Studio City and Altira Macau, retreated 2.7% Monday to finish at 28.21. The company draws much of its sales from its Chinese locations and is owned by Hong Kong-based Melco International Development.
The stock is in a seven-week consolidation with a buy point of 30.49. It lags Wynn Resorts with a Composite Rating of 82. But its RS line is at its highest level in more than three years.
Melco missed Q4 earnings views, despite a 59% year-over-year gain. Revenue grew 12% to $1.333 billion, just above estimates.
Las Vegas Sands
The gaming giant, which operates Sands Macao and The Plaza Macao, ended 1.8% lower at 70.58.
The stock has been building a third stage flat base for the past eight weeks but remains far from its buy point of 79.84. Its RS line is currently at its highest mark in more than two years. It ranks third in the Leisure-Gaming/Equipment Group and has a Composite Rating of 86. The stock is trading below its 50-day line.
Las Vegas Sands' Q4 earnings per share rose 42% while revenue grew 12% to $3.4 billion. Both topped views.
MGM Resorts International
MGM Resorts shares fell 3.3% to 33.88.
The business has a majority interest in MGM China Holdings, which owns MGM Macau and is developing a gaming resort in the territory's Cotai area.
MGM Resorts stock has been consolidating over the past eight weeks but is below its 50-day line. The buy point is 38.41. It is also lagging the leaders, with a Composite Rating of 66. It holds a noticeably poor EPS Rating of just 39.