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Las Vegas Sands Corp. (LVS), founded in 1988 and headquartered in Las Vegas, Nevada, develops, owns, and operates numerous integrated resorts in Macao and Singapore. Commanding a market cap of $34.2 billion, its integrated resorts feature luxurious accommodations, casinos, entertainment, malls, celebrity chef restaurants, and other amenities. It owns five integrated resorts in Macao and one in Singapore.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Las Vegas Sands fits right into that category, reflecting its substantial size, influence, and dominance in the resort and casino industry. Moreover, its emphasis on Asia has solidified its leadership in the region's gaming and hospitality sector. With properties like the Venetian Macao and Marina Bay Sands, it also boasts prestigious assets.
LVS’ stock has slipped 25% from its 52-week high of $61.25, achieved on Jul. 13, 2023. LVS stock saw a decline of 8.8% over the past three months, significantly trailing behind the Dow Jones Industrials Average ($DOWI), which is down 1.6% over the same time frame.
In the longer term, LVS stock is down 6.7% on a YTD basis and has dipped 21.3% over the past 52 weeks, lagging behind DOWI’s gain of 3.9% in 2024 and 15.3% over the past 52 weeks.
To confirm the bearish trend, Las Vegas Sands’s shares have traded below its 50-day and 200-day moving averages since mid-April.
Las Vegas Sands has faced a long-term bearish trend and has declined 22.3% over the past five years. The company has faced several challenges in the past few years, one of the biggest being the COVID-19 pandemic, which was disastrous for all the companies in the hospitality sector.
Moreover, the stock fell for three consecutive sessions following its Q1 earnings release on April 17, despite a 39.6% year-over-year jump in revenue to $3 billion. The casino segment, which generates the majority of the company's revenue, also saw a 44.6% jump in revenues. Moreover, the company also surpassed the Wall Street EPS estimates by 21%.
Moreover, on May 29, it was reported that Las Vegas Sands is considering expanding its casino space at Marina Bay Sands (MBS) in Singapore. The expansion will likely focus on increasing the current casino space rather than adding a new facility. Despite the positive news, LVS stock’s price reached a new 52-week low on Jun. 7.
LVS’s rival, MGM Resorts International (MGM), has performed relatively better. MGM’s stock has declined 2.2% over the past 52 weeks and dipped 6% in 2024.
Despite LVS’ underperformance relative to DOWI, Wall Street analysts remain highly optimistic about LVS’ prospects. The stock holds a consensus “Strong Buy” rating from the 14 analysts covering it. The mean target of $61.93 suggests a potential upside of 34.9% from the current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
