Stock prices for casinos tend to decline in June.
The remaining 18 trading days in June could determine the overall performance of the broader market. However, based on historical trends, this month may prove challenging for casino stocks.
Out of the 25 poorest performers in the S&P 500 over the last 10 Junes, three are casino equities with Wynn Resorts (NASDAQ: WYNN) being the least successful during this period. According to data from Schaeffer's Chief Quantitative Analyst Rocky White, Wynn ranks as the third most underperforming stock on the S&P 500 Index (SPX) for June over the past ten years. Wynn shares averaged a loss of 3.1% for the month and finished in the negative territory seven times.
Furthermore, looking at median June returns from the past decade, Wynn holds the title of the worst performer in the S&P 500 during the sixth month of the year.
Seasonal Patterns for Casino Stocks in June
There's an interesting pattern when it comes to the seasonality of casino stocks in June. Although Memorial Day signals the start of the summer travel season, travel and leisure stocks usually have a struggling month.
Joining Wynn as the worst-performing S&P 500 stocks in June are travel booking site Booking.com (NASDAQ: BKNG) and cruise operator Royal Caribbean Group (NYSE: RCL). Additionally, two other travel and leisure companies are also among the worst performers during this period.
This underperformance showcases the efficiency of the market, implying that investment strategies such as buying stocks based on increased casino visitation during the summer months don't always lead to positive stock performance. In fact, these approaches can result in negative consequences.
To add to this, the traditional energy sector also demonstrates a weaker performance during the summer months, despite common assumptions that gasoline demand, and subsequently prices, increase during the summer travel season.
Other Casino Stocks Struggling in June
Two more significant casino operators, MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), also rank as some of the worst performers in the S&P 500 during June. Wynn's average June loss of 0.95% and Caesars' average June loss of 1.72% reflect the general trend. However, Caesars' median June loss of 3.61% surpasses only Wynn in the S&P 500's poor performers, making it the second-worst performer during this month.
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