Valued at a market cap of $10 billion, Wynn Resorts, Limited (WYNN) is a leading developer, owner and operator of casino resorts. The Las Vegas, Nevada-based company operates through four segments, consisting of Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor.

Shares of this luxury resort and casino company have significantly underperformed the broader market over the past 52 weeks. WYNN has gained 5.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31.1%. Moreover, on a YTD basis, the stock has increased marginally, lagging behind the SPX’s nearly 24.7% gain.

Zooming in further, WYNN’s underperformance becomes more evident when compared to the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 28.3% gain over the past 52 weeks and 20.2% return on a YTD basis.

Shares of WYNN fell 9.3% after its weaker-than-expected Q3 earnings release on Nov. 4. The company’s revenue increased 1.2% to $1.69 billion, but missed the consensus estimates of $1.73 billion. Its adjusted EPS of $0.90 also missed the Wall Street estimates of $1.17 and fell 9.1% from a year ago. The results were primarily driven by a decline in revenues from its Las Vegas and Wynn Palace operations. 

However, for the current fiscal year, ending in December, analysts expect WYNN’s EPS to grow 18.8% year over year to $4.87. The company’s earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on other two occasions. 

Among the 15 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on 11 “Strong Buy,” one “Moderate Buy,” and three “Hold” ratings. 

On Nov. 5, Stifel maintained a “Buy” rating on WYNN and raised its price target to $125 - The Street-high price target, which indicates a 36.2% potential upside from the current levels. 

The mean price target of $114.25 represents a 24.5% upside from WYNN’s current price levels.