Analyst Warns of Slower-Than-Expected Macau Gaming Sales in May; Casino Stocks Moving Lower (LVS) (WYNN) (MGM)

Stocks in the Casino & Gaming sector are underperforming the broader stock market Monday, possibly on the heels of an earlier note from Wells Fargo which suggested an early read on Macau gaming sales in May was light. The firm's Cameron McKnight said recent data implies 15-19 percent year-over-year growth in sales within Macau, at the low end of the Street's current expectation.

McKnight believes sub-20 percent growth in the region for this month might disappoint investors "as it implies revenue growth will need to pick up in the back half to meet consensus estimates of 20-25% yr/yr growth..." The analyst noted this will be difficult as "comparisons through the year become progressively tougher, especially in July/Aug/Sept..."

Wells Fargo remains cautious on the Macau gaming market.

Shares of Las Vegas Sands (NYSE: LVS) are down 0.7 percent at last check, shares of Wynn (Nasdaq: WYNN) are down 1.1 percent, and MGM Resorts (NYSE: MGM) shares are down about 2 percent. Shares of Melco Crown (Nasdaq: MPEL), meanwhile, are up more than 3 percent amid a report from firm Union Gaming which suggests the company's Studio City Casino may soon get approval.

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