While the stock market tends to rise over time, within that cycle there can be different moves. Recently, tech stocks have been the big winners.
That’s left other sectors underperforming. However, that will likely change in time. And when that happens, companies in overlooked or disliked sectors can become the big winners moving forward. A number of sectors look oversold and potentially ready to move higher in the weeks and months ahead.
One area is casino stocks. While they’ve largely rallied so far this year, they’ve also been held back by fears of a slowing economy.
We’re seeing signs that travel and tourism continues to remain strong, with a cutback largely occurring more on goods rather than services.
That could bode well for buyers of Wynn Resorts (WYNN). The casino operator has started to pullback, and could be a buy in the coming weeks.
Even with fears of a slowing economy, the casino saw revenues jump nearly 50 percent last year. And it looks attractive relative to peers, as it looks to expand in Macau.
Action to take: Investors should use the current pullback to build a stake under $100 per share, and use any further drops lower to add to it.
For traders, the September $110 calls, last going for about $5.20, could turn a move higher in shares into a mid-double-digit win or better in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.