As Recommended By Analysts, Here Are Growth Stocks That Are Worth Considering In The Coming Year.
Uncertainty surrounds the future as the new year looms, but that doesn’t mean that long-term investors should change their trading and investing tactics. After all, purchasing stocks of good companies at practical prices and holding them for a long period is the key to the success in investing. This is especially better if these companies have excellent growth potential.
There are two growth stocks that are appealing right now as 2017 is just days away. Keep these shares in mind for the next year.
Wynn Resorts Limited (NASDAQ:WYNN)
Investors' radars this January should include high-end casino and resort operator Wynn Resorts. WYNN shares have performed well in the year, but over the past three years, the stock dropped by nearly two-thirds.
One of the company’s struggles was the waning casino revenue in China, which is mainly an effect of its GDP growth slowdown and worries in the US that subpar GDP growth would affect its business in Las Vegas. But based on the most recent earnings result, Wynn seems to be sailing safely.
Previously in August, Wynn Palace was opened in Macau—a high-end casino and resort that possesses 100 new table games and will have a total of 150 in place by year 2019. Wynn Resorts ended up netting $164.6 million in revenue during a partial third-quarter from the Macau-based luxury casino resort. In the coming year, with a full year of revenue from Wynn Palace, the company’s revenue could grow by almost $900 million from 2016.
Although there continues to be a steady decline in Wynn Palace as China’s wealthiest adapt to the country’s somewhat slower growth pace, the charm of a new luxury hotel could more than surpass the recent year-over-year (YOY) casino revenue downticks and the decline in revenue per available room (RevPAR) in Macau.
Improving economic outlook in the US inclusive of higher interest rates and a new peak in the US stock market could brighten the prospect for gamblers in Las Vegas. There may be benefits that have improved outlook in Wynn's top-line results. Room revenues in Las Vegas added more than 9% in third-quarter 2016, while RevPAR added 6.6%. Should traffic head once again in Vegas's way, it's just a matter of time before Wynn witnesses better results from its smaller contributing US operations.
Wynn has the potential to boost its EPS growth from roughly 10% in 2017 to possibly 20% - 25% yearly by the end of the decade, according to Wall Street. To boot, investors also get a 2.2% yield while they wait for Wynn Palace to prosper in Macau.
Overall, Wynn appears to be a solid growth play worthy of any investor’s consideration in January. In the last session, WYNN ended at $87.08, down by $1.16 or 1.31%.
Zillow Group Inc (NASDAQ:ZG)
Zillow Group shares have climbed over 60% year to date with only three days left before the year ends, including a 36% burst in May. The online real estate giant, however, is just marking the beginning for its gains.
Previously in early November, Zillow sustained its routine of crushing Wall Street’s estimates after it set a fresh company record with revenue up 35% YoY to $224.6 million. These figures had beaten the guidance for $217 million to $220 million. Adjusted earnings before interest, taxes, depreciation and amortization more than doubled over the same time frame to $59.5 million, topping guidance for $48 million to $53 million.
The online real estate leader also swung to GAAP profitability with net income of $6.8 million, or $0.04 per share, climbing from a net loss of $26 million, or $0.15 per share in last year's third quarter. On an adjusted (non-GAAP) basis— not including items like stock-based compensation and acquisition costs— Zillow's earnings of $0.18 per share easily passed analysts' expectations of $0.13 per share.
Zillow's growth is broad-based as well as marketplaces revenue surged 45% to $206.9 million, including a 33% gain in Premier Agent revenue. Mortgages revenue rose 57% to $19.8 million, and revenue from other up-and-coming businesses such as dotloop, agent services, StreetEasy, Naked Apartments, and rentals approximately tripled to $28.8 million YoY.
Zillow's core business targets to take as much share of the estimated $12 billion those real estate agents spend per annum to promote their listings. Add the favorable incremental prospects created by its smaller complementary segments, Zillow has plenty of room to grow further in 2017.
ZG shares finished Wednesday’s session with a 0.58 cents or 1.54% loss to trade at $37.15.