The casino industry is a dynamic landscape of high stakes and bright lights, and today, Wynn Resorts (WYNN), MGM Resorts (MGM), and Caesars Entertainment (CZR) each face distinctly different strategic positions. From Macau’s recovery to the competitive push for casino licenses in New York, these companies are navigating a variety of opportunities and challenges.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
In this analysis, I’ll outline the investment cases for each: why I’m bullish on MGM’s diversified growth strategy, cautiously optimistic about Wynn’s ambitious expansion efforts, and concerned about Caesars’ debt-laden balance sheet.
Wynn Resorts (NASDAQ:WYNN)
Wynn is all about luxury, and these days, its story hinges on its international expansion plans. Macau, where Wynn generates over half its revenue, saw a 19% surge in gaming revenue in June, reaching $2.6 billion, which boosted investors’ confidence in the stock. There could also be notable upside from Wynn Al Marjan, a $2.4 billion UAE resort slated for 2027, which is tapping into a market expected to generate $1.5 billion annually by 2030. Add the Wynn Mayfair acquisition in Europe, and Wynn continues to plant flags in new territories.
Yet, the balance sheet raises eyebrows. With $10.5 billion in long-term debt against just $2.1 billion in cash, Wynn’s leverage is a tightrope walk.
Its net debt/EBITDA ratio of 1.5x is manageable, but heavy capital spending on projects like Al Marjan could strain cash flow if tourism or Macau’s recovery falters. Therefore, I view Wynn as a high-stakes play. The company’s premium brand and expansion could drive growth, but the debt and long-term payoffs make it a coin toss for now.
Is WYNN a Buy, Hold, or Sell?
Currently, the overwhelming majority of analysts covering WYNN stock are bullish. The stock carries a Strong Buy consensus rating, based on eight Buy and two Hold ratings assigned over the past three months. Notably, no analyst has assigned the stock a sell rating. However, WYNN’s average stock price target of $107.38 implies a ~2.5% downside over the next twelve months, meaning Wall Street believes WYNN is already priced to perfection.
MGM Resorts (NYSE:MGM)
MGM has a swagger that’s hard to ignore. Its inclusion in the Russell 2500 Index in June signals mid-cap growth potential, drawing passive fund inflows. Macau’s gaming boom also helped MGM’s stock climb recently, while strong EBITDA growth is expected to continue throughout the rest of 2025, likely sustaining the bullish momentum. Notably, this guidance marks a 15–20% jump from last year, showing confidence in its diverse portfolio, from Vegas’s Bellagio to New York’s Empire City.
Debt is also a factor for MGM, with $29.1 billion in net debt as of Q1, but a debt-to-equity ratio of 1.79 and $1.5 billion in free cash flow potential per annum give MGM breathing room. The push for a full-scale casino license in New York, projected to generate $1.39 billion in annual revenue, adds upside, although regulatory hurdles and competition from Las Vegas loom.
Overall, I’m bullish on MGM. Its diversified assets and cash flow strength make it a safer bet in a volatile sector. Management’s relentless focus on repurchasing shares is also a notable characteristic worth mentioning.
Is MGM Stock a Good Buy?
On Wall Street, MGM stock carries a Moderate Buy consensus rating based on nine Buy and six Hold ratings. MGM’s average stock price target of $43.57 implies almost 15.5% upside potential over the next twelve months.
Caesars Entertainment (NASDAQ:CZR)
Caesars is a titan, but its balance sheet’s a heavyweight anchor. Caesar’s digital segment grew 18.8% last quarter, and a proposed Times Square casino could generate $23.3 billion in gaming revenue over the next decade. Assuming the company can grow its free cash flow by moderating CAPEX in the near future, we might see some accelerated debt paydowns.
Still, the balance sheet remains messy. A debt-to-equity ratio of over 6.0 and a current ratio of 0.8 scream liquidity concerns for the company. Interest expenses (they were $2.3 billion last year) eat into profits, and flat Vegas performance doesn’t help.
Until debt shrinks significantly, Caesars feels like a risky hand. In fact, the company is expected to post losses this year and only $0.89 in fiscal 2026, which implies a FY2026 P/E of ~34 despite the challenges. Thus, I believe the stock offers little to no margin of safety today.
Is CZR a Good Stock to Buy?
Caesar’s is currently covered by 14 Wall Street analysts, most of whom hold a bullish outlook. The stock carries a Moderate Buy consensus rating with nine analysts assigning a Buy and five a Hold rating over the past three months. CZR’s average price target of $39 suggests ~32% upside potential over the next twelve months.
MGM Leads, WYNN Waits, and CZR Struggles
In this casino stock showdown, MGM emerges as the frontrunner, backed by a diversified portfolio and strong cash flow, positioning it well for sustained growth. Wynn is pursuing high-stakes opportunities with its expansions in Macau and the UAE, but its elevated debt and long-term horizon require investor patience. Meanwhile, Caesars remains burdened by a heavy debt load, making it a risky bet that could falter before delivering returns.
As always, assess the landscape, weigh the risks, and invest where the fundamentals tell the strongest story—because in investing, strategy always trumps luck.