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Here's Why You Should Retain Las Vegas Sands (LVS) Stock
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Las Vegas Sands Corp. (LVS - Free Report) is likely to benefit from its solid business model, strong Singapore business and extensive non-gaming revenue opportunities. Also, the emphasis on development projects bodes well. However, a decline in visitation from the pre-pandemic level is a concern.
Let us discuss the factors that highlight why investors should retain the stock now.
Growth Catalysts
Shares of Las Vegas Sands have increased 21.8% in the year-to-date period compared with the Zacks – Gaming industry’s rise of 31.8%. The company is benefiting from a solid business model, extensive non-gaming revenue opportunities, high-quality assets and attractive property locations. The strong portfolio has aided the company withstand the economic downturn in China. With the economy recovering in the United States, the company’s business should continue to grow.
Image Source: Zacks Investment Research
The company emphasized increasing its investment in the Singapore market and boosting offerings throughout 2023. The company is quite confident about growth prospects in Singapore, which is one of the top spots for gambling. Management announced that it would continue to invest in the expansion of Marina Bay Sands, Singapore, to reinforce its dominant position in the region. During first-quarter 2023 conference call, the company stated that it has equaled its 2019 rolling volumes in Singapore. It emphasized increasing investment in the Singapore market and boosting offerings throughout 2023. LVS anticipates demand in Singapore to be robust after travel and tourism spending return to normal. Per our model, revenues from Marina Bay sands in 2023 are expected to rise 31.4% year over year.
LVS is positive about Macao's recovery, with increased property visits, gaming, retail sales, and hotel occupancy during the first quarter. The region's resilience stems from strong customer demand and higher spending at the premium mass level. Despite the current scenario, the company announced that it will progress with its $2.2-billion investment in Macao.
Backed by these investments, Las Vegas Sands aims to capitalize on the likely structural growth in Macao in the coming years to stay ahead of the curve in terms of the quality and scale of its product and amenities. The company anticipates the projects to boost its strategic position and competitiveness across multiple segments, enabling growth in its retail business and meetings, incentive, convention and exhibitions (MICE) space. Per our model, revenues from Macau operations in 2023 are expected to rise 236.5% year over year.
Concerns
Maintaining liquidity has become an arduous task for most companies during current scenario. Total debt outstanding (excluding finance leases and financed purchases) was $15.97 billion compared with $15.95 billion as of Dec 31, 2022. As of Mar 31, unrestricted cash balances amounted to $6.53 billion compared with $6.31 billion in the previous quarter. Although casinos in Macao and Singapore are open, visitation is still very low compared with the pre-pandemic level. The company is cautious of uncertain pace of recovery of travel and tourism in Asia.
Zacks Rank & Key Picks
Las Vegas Sands currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 48.7% and 163%, respectively, from the year-ago period’s levels.
Trip.com Group Limited (TCOM - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 148%, on average. Shares of TCOM have increased 25% in the past year.
The Zacks Consensus Estimate for TCOM’s 2023 sales and EPS indicates a rise of 102.2% and 334.5%, respectively, from the year-ago period’s levels.
Bluegreen Vacations Holding Corporation sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 24.7%, on average. Shares of BVH have increased 34.8% in the past year.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates a rise of 3.6% and 17.6%, respectively, from the year-ago period’s levels.
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Here's Why You Should Retain Las Vegas Sands (LVS) Stock
Las Vegas Sands Corp. (LVS - Free Report) is likely to benefit from its solid business model, strong Singapore business and extensive non-gaming revenue opportunities. Also, the emphasis on development projects bodes well. However, a decline in visitation from the pre-pandemic level is a concern.
Let us discuss the factors that highlight why investors should retain the stock now.
Growth Catalysts
Shares of Las Vegas Sands have increased 21.8% in the year-to-date period compared with the Zacks – Gaming industry’s rise of 31.8%. The company is benefiting from a solid business model, extensive non-gaming revenue opportunities, high-quality assets and attractive property locations. The strong portfolio has aided the company withstand the economic downturn in China. With the economy recovering in the United States, the company’s business should continue to grow.
Image Source: Zacks Investment Research
The company emphasized increasing its investment in the Singapore market and boosting offerings throughout 2023. The company is quite confident about growth prospects in Singapore, which is one of the top spots for gambling. Management announced that it would continue to invest in the expansion of Marina Bay Sands, Singapore, to reinforce its dominant position in the region. During first-quarter 2023 conference call, the company stated that it has equaled its 2019 rolling volumes in Singapore. It emphasized increasing investment in the Singapore market and boosting offerings throughout 2023. LVS anticipates demand in Singapore to be robust after travel and tourism spending return to normal. Per our model, revenues from Marina Bay sands in 2023 are expected to rise 31.4% year over year.
LVS is positive about Macao's recovery, with increased property visits, gaming, retail sales, and hotel occupancy during the first quarter. The region's resilience stems from strong customer demand and higher spending at the premium mass level. Despite the current scenario, the company announced that it will progress with its $2.2-billion investment in Macao.
Backed by these investments, Las Vegas Sands aims to capitalize on the likely structural growth in Macao in the coming years to stay ahead of the curve in terms of the quality and scale of its product and amenities. The company anticipates the projects to boost its strategic position and competitiveness across multiple segments, enabling growth in its retail business and meetings, incentive, convention and exhibitions (MICE) space. Per our model, revenues from Macau operations in 2023 are expected to rise 236.5% year over year.
Concerns
Maintaining liquidity has become an arduous task for most companies during current scenario. Total debt outstanding (excluding finance leases and financed purchases) was $15.97 billion compared with $15.95 billion as of Dec 31, 2022. As of Mar 31, unrestricted cash balances amounted to $6.53 billion compared with $6.31 billion in the previous quarter. Although casinos in Macao and Singapore are open, visitation is still very low compared with the pre-pandemic level. The company is cautious of uncertain pace of recovery of travel and tourism in Asia.
Zacks Rank & Key Picks
Las Vegas Sands currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have gained 181.6 in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 48.7% and 163%, respectively, from the year-ago period’s levels.
Trip.com Group Limited (TCOM - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 148%, on average. Shares of TCOM have increased 25% in the past year.
The Zacks Consensus Estimate for TCOM’s 2023 sales and EPS indicates a rise of 102.2% and 334.5%, respectively, from the year-ago period’s levels.
Bluegreen Vacations Holding Corporation sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 24.7%, on average. Shares of BVH have increased 34.8% in the past year.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates a rise of 3.6% and 17.6%, respectively, from the year-ago period’s levels.