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Three reasons why Wynn is one of our favorite stocks: Wells Fargo

Lawrence Lewitinn
Talking Numbers
Three reasons why Wynn is one of our favorite stocks: Wells Fargo

Wynn Resorts is up 60% year-to-date but is a slowdown in China a reason to worry?

For some, one way to literally bet on China is by buying shares of Wynn Resorts. In the most recent quarter, 72.8% of Wynn's revenues came from its properties in Macau, China's gambling haven. Wynn has had, well, a winning year with shares up over 60% in 2013. But, with worries of a slowdown in China, should investors be worried that their wager on Wynn will go bust?

(Watch: Why casinos will stay hot)

Cameron McKnight, gaming analyst at Wells Fargo Securities, says Wynn remains a buy.

"Wynn's one of our favorite stocks," says McKnight on CNBC's Street Signs' Talking Numbers segment. "And, we generally like the large-cap gaming names."

McKnight says there are three reasons he likes Wynn: its exposure to Macau, its growth options, and its valuation given its return of capital.

(Read: Las Vegas Sands shares up on S&P upgrade)

However, Andrew Busch, editor and publisher of The Busch Update, says the charts make him wary of the stock for the short run, at least. Busch sees Wynn shares hitting the top of a trend channel begun in 2012.

"I'd go flat here," says Busch, who says that an investor could even go short (with a stop above $183.50) in anticipation of a move down to the bottom of the upwards-sloping trend channel.

To see the rest of McKnight's fundamental analysis and Busch's technical analysis of Wynn Resorts, watch the video above.

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