Calls of the Day: Wynn, Cummins, Boston Scientific, Applovin and Monster Beverage
Summary
The CNBC Investment Committee discusses analyst calls of the day on Wynn, Cummins, Boston Scientific, Applovin and Monster Beverage. Jimmy favors Wynn on Macau and Dubai growth, while Joe prefers Las Vegas Sands on balance-sheet quality and also defends Cummins. Joe is skeptical on Applovin, holds Boston Scientific, and lists consumer-staple holdings including Monster, Walmart and Costco. The transcript cuts off during the Monster discussion.
- Goldman expects another tough Las Vegas quarter but keeps Buy ratings on Wynn and Las Vegas Sands.
- Jimmy is considering adding to Wynn, citing Macau exposure and a Dubai resort opening.
- Joe prefers Las Vegas Sands over Wynn on balance sheet and quality factors.
- Joe disagrees with the Wolfe Cummins downgrade, liking its valuation, power gen momentum and earnings delivery.
- Joe owns Boston Scientific and will review it at the Friday rebalance.
- Joe is skeptical of the Needham Applovin upgrade, calling it the worst tech name they own.
- Joe lists Monster, Walmart and Costco as consumer-staple holdings; Costco is recovering from underperformance.
- The transcript truncates during Joe's response to the Morgan Stanley Monster Beverage call.
Ideas
Wynn's Macau and Dubai boost earnings.
Jimmy is thinking of adding to Wynn because, while Las Vegas is weak after difficult post-pandemic comparisons, Wynn's Macau exposure and its Dubai resort opening in less than a year—maybe a year—should drive a real boost in earnings. He already owns it and says that is why he owns it.
Las Vegas Sands better trade than Wynn.
Joe prefers Las Vegas Sands over Wynn as the better trade because Wynn has negative return on equity and negative debt-to-equity and fails their quality factor, while Las Vegas Sands has a stronger balance sheet; it is a newer position established at the end of October, up about 2.5%, with strong momentum, though the group is pulling back from early December highs.
Las Vegas Sands better trade than Wynn.
Joe prefers Las Vegas Sands over Wynn as the better trade because Wynn has negative return on equity and negative debt-to-equity and fails their quality factor, while Las Vegas Sands has a stronger balance sheet; it is a newer position established at the end of October, up about 2.5%, with strong momentum, though the group is pulling back from early December highs.
Cummins undervalued, power gen strong.
Joe disagrees with the Wolfe downgrade, saying Cummins' valuation is not extreme at about 30 times; he sees Cummins doing well in the power generation business with strong momentum and earnings delivery, and he cites it alongside other strong industrial names like United Rentals, Vertiv, Quanta and Fastenal.
Owns Boston Scientific; reviewing Friday rebalance.
Joe says they own Boston Scientific; it has been underperforming recently as many medical device names have come under pressure, and they will review it at their Friday rebalance, so he cannot say much more.
Applovin worst tech holding, momentum weak.
Joe is skeptical of the Needham upgrade and buy-the-dip call, calling Applovin the worst tech name they own; the stock has pulled back significantly and repeatedly failed to reestablish positive momentum, which suggests more people are looking to exit than enter, with the 200-day moving average at 489 as an interesting challenge if it gets there.
Owns Monster, positive on consumer staple.
Joe says Monster is one of three consumer staple names they own; the Morgan Stanley overweight call is on the stock, and he appears positive on it, though the transcript cuts off after 'I like...'.
Owns Walmart as consumer staple holding.
Joe lists Walmart as one of three consumer staple names they own, with no further company-specific thesis given in the transcript.
