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Nevada-based Las Vegas Sands Corp. (LVS) develops, owns, and operates integrated resorts and convention centers in Macao and Singapore. With a market cap of $30.8 billion, the company offers a wide range of gaming activities and entertainment as well as overnight accommodations, while its expo centers host a wide range of entertainment shows, expositions, and other activities.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and LVS perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the resorts & casinos industry.
Las Vegas Sands solidifies its market leadership in gaming and hospitality, driven by iconic properties like Venetian Macao and Marina Bay Sands. The company’s strong brand and efficient operations capitalize on its rebounding tourism and gaming sectors, driving profitability and shareholder value.
Despite its notable strength, LVS has retreated 26.7% from its 52-week high of $55.65, achieved on Feb. 16. Over the past three months, LVS stock has declined 7.9%, underperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 6.6% gains during the same time frame.
In the longer term, shares of LVS fell 17.1% on a YTD basis and dipped 16.9% over the past 52 weeks, underperforming XLY’s YTD gains of 7.8% and 13.6% returns over the last year.
To confirm the bearish trend, LVS has been trading below its 50-day and 200-day moving averages since early April, with slight fluctuations recently.
On Aug. 23, LVS shares closed down more than 1% after UBS Group AG (UBS) downgraded the stock to “Neutral” from “Buy,” noting the recovery in the company’s Macau business got more protracted.
On Jul. 24, LVS reported its Q2 earnings result, and its shares closed down more than 2% in the following trading session. Its adjusted EPS of $0.55 fell short of Wall Street expectations of $0.59. The company’s revenue was $2.76 billion, missing forecasts of $2.84 billion.
LVS’ top rival, MGM Resorts International (MGM), has also had its share of the rough ride. MGM's shares plummeted 17.3% in 2024 alone and 8.3% over the past 52 weeks.
Wall Street analysts are moderately bullish on LVS’ prospects. The stock has a consensus “Moderate Buy” rating from the 15 analysts covering it, and the mean price target of $53 suggests a potential upside of 29.9% from current price levels.
On the date of publication, Neha Panjwani 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.
