Tesla, Wynn Performs Poorly As Dollar Rises

May 29, 2022 at 11:46 AM EDT

Since the beginning of the year, Dollar Spot Index has gained 4.5%. For the money, it’s a tremendous leap forward. Currencies tend to fluctuate less than stock prices in general. Tesla and Wynn, on the other hand, have suffered as a result of the strengthening of the dollar.

Investors have taken a shine to the dollar due to the country’s strong economic development and steadily increasing interest rates. Demand for the currency has also surged as a haven in times of global turmoil because Russia participated in the Ukraine crisis.

You may be affected by the rising dollar if you are a stock investor. It’s not hard to find S&P 500 stocks that the rising dollar has hit the worst in recent years.

Starting with the most adversely sensitive, the corporations are presented in decreasing order of their recent negative sensitivity to a strong dollar.

Find out more about the mining business Freeport-McMoRan, Inc. (NYSE: FCX).
Learn more about Tesla (TSLA) – The electric vehicle company.
Get Wynn Resorts, Limited Report, a casino corporation, from Wynn Resorts (WYNN).
Rental equipment provider United Rentals, Inc. may be found at the URI.
A casino firm, MGM Resorts International (MGM).
A casino corporation, Caesars Entertainment Inc. (CZR) – Get Caesars Entertainment Inc. (CZR)
A corporation that makes industrial technologies, Trimble (TRMB).
Tommy Hilfiger is one of the brands owned by the Tommy Hilfiger Corporation (PVH).
Caterpillar Inc. (CAT) – Get the latest Caterpillar Inc. (CAT) stock price and financial information.
Eastman Chemical (EMN) – Get a detailed report on Eastman Chemical.

See this page for a list of stocks that will gain the most from a strengthening dollar.

It’s Tesla vs. Morningstar

According to Morningstar analyst Seth Goldstein, Tesla presently has a fair value of $750. According to Goldstein, Musk’s position in the firm is linked to its brand. Tesla doesn’t advertise its products, so we think the market intertwines their brand with his.”

“What drives Tesla’s brand is its electric car and autonomous driving technological leadership,” Goldstein said in a post. Tesla’s strong brand will stay intact, according to Goldstein, while the firm develops new cars and advances its autonomous driving technology.

Our immediate worry is that Tesla will be able to launch and commence mass production of its Cybertruck next year effectively. Three major players in the electric-truck market are Rivian Automotive, Inc. Class A (RIVN) – Get Rivian Automotive, Inc. Report; Ford (F) – Get Ford Motor Company Report; and General Motors (GM)

Take a look at Morningstar’s challenge against Wynn.

Wynn has a small moat and is valued at $105, according to a Morningstar analysis by analyst Dan Wasiolek. Inflation and China’s Covid policy negatively hurting future demand are two significant worries for investors, as seen by the stock price of $65. “Wynn’s capacity to repay its loan may be negatively affected by China’s covid policy,” stated Wasiolek in a remark.

Wasiolek argued that investors “underestimate Wynn’s demand and liquidity.” Investors are undervaluing the demand potential and liquidity profile of Wynn, and we think the recent decline in the stock’s price represents a good entry point. Shares of Wynn have dropped by 23% so far this year. Wasiolek chimed in, saying, “This is ridiculous to us.”

This year’s Macao revenue will not increase, and neither will the Vegas assets, according to our discounted cash flow model,” Wasiolek said.

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