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Las Vegas Sands (LVS) Macao Prospects Bright, Risks Remain
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On Mar 3, we issued an updated research report on Las Vegas Sands Corp. (LVS - Free Report) .
The company’s properties at Las Vegas continue to cash in on the benefits of an improving employment rate and impressive tourism numbers in the region. Further, the diversification of its resort portfolio and non-gaming options should contribute significantly to revenues.
Meanwhile, after a tough operating environment in Macao in 2015 and for most part of 2016, things are starting to look up for the mecca of casino gaming as revenues in the region grew on an annual basis in February as well. This marked the seventh consecutive month of gains, following an extended slump of over two years.
The company also noted that its Macao portfolio is experiencing strong visitation and higher hotel occupancy rates. Going forward, Las Vegas Sands is confident that the benefits of the increased scale achieved in its market-leading hotel, retail and entertainment offerings will enable it to deliver strong financial performance and growth in Macao.
The company is particularly optimistic about its new resort, The Parisian Macao (opened on Sep 13, 2016) on the Cotai Strip in Macao which has been a valuable addition to its portfolio. The resort is expected to continue to attract tourists and leisure gamblers, thereby boosting revenues.
Meanwhile, Japan is set to have its first casino resort as its parliament has passed a law to legalize the same. This can possibly translate into huge profits and cash flow for casino players like Las Vegas Sands, which has been eyeing the Japanese market. Notably, Japan is one of the largest untapped markets in the world.
However, Las Vegas Sands’ share performance compares unfavorably with the Zacks categorized Gaming industry over the past six months. While the stock lost 3.2%, the broader industry witnessed a gain of 4.2% over the same time period.
Thus, despite the improving gaming trends in Macao, it seems that it will take some time for the company to make a complete turnaround in the region.
This is because though the efforts by Macao operators to revive revenues through the addition of new resorts and more non-gaming facilities have started yielding results over the past seven months, the anti-graft corruption drive undertaken by the Chinese government is keeping VIP gamblers somewhat at bay.
The Zacks Consensus Estimate for Intrawest Resorts Holdings’ fiscal 2017 earnings climbed nearly 26% over the past 60 days. Moreover, the trailing four-quarter average earnings surprise is a positive 8.71%.
Royal Caribbean’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 22.26%. Further, for 2017, EPS is expected to grow 15.4%.
The Zacks Consensus Estimate for Pinnacle Entertainment’s full-year 2017 earnings climbed 115% over the last 60 days. Further, for 2017, EPS is expected to increase over 100%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Las Vegas Sands (LVS) Macao Prospects Bright, Risks Remain
On Mar 3, we issued an updated research report on Las Vegas Sands Corp. (LVS - Free Report) .
The company’s properties at Las Vegas continue to cash in on the benefits of an improving employment rate and impressive tourism numbers in the region. Further, the diversification of its resort portfolio and non-gaming options should contribute significantly to revenues.
Meanwhile, after a tough operating environment in Macao in 2015 and for most part of 2016, things are starting to look up for the mecca of casino gaming as revenues in the region grew on an annual basis in February as well. This marked the seventh consecutive month of gains, following an extended slump of over two years.
The company also noted that its Macao portfolio is experiencing strong visitation and higher hotel occupancy rates. Going forward, Las Vegas Sands is confident that the benefits of the increased scale achieved in its market-leading hotel, retail and entertainment offerings will enable it to deliver strong financial performance and growth in Macao.
The company is particularly optimistic about its new resort, The Parisian Macao (opened on Sep 13, 2016) on the Cotai Strip in Macao which has been a valuable addition to its portfolio. The resort is expected to continue to attract tourists and leisure gamblers, thereby boosting revenues.
Meanwhile, Japan is set to have its first casino resort as its parliament has passed a law to legalize the same. This can possibly translate into huge profits and cash flow for casino players like Las Vegas Sands, which has been eyeing the Japanese market. Notably, Japan is one of the largest untapped markets in the world.
However, Las Vegas Sands’ share performance compares unfavorably with the Zacks categorized Gaming industry over the past six months. While the stock lost 3.2%, the broader industry witnessed a gain of 4.2% over the same time period.
Thus, despite the improving gaming trends in Macao, it seems that it will take some time for the company to make a complete turnaround in the region.
This is because though the efforts by Macao operators to revive revenues through the addition of new resorts and more non-gaming facilities have started yielding results over the past seven months, the anti-graft corruption drive undertaken by the Chinese government is keeping VIP gamblers somewhat at bay.
Zacks Rank & Stocks to Consider
Las Vegas Sands presently has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include Intrawest Resorts Holdings, Inc. (SNOW - Free Report) , Royal Caribbean Cruises Ltd. (RCL - Free Report) and Pinnacle Entertainment, Inc. . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Intrawest Resorts Holdings’ fiscal 2017 earnings climbed nearly 26% over the past 60 days. Moreover, the trailing four-quarter average earnings surprise is a positive 8.71%.
Royal Caribbean’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 22.26%. Further, for 2017, EPS is expected to grow 15.4%.
The Zacks Consensus Estimate for Pinnacle Entertainment’s full-year 2017 earnings climbed 115% over the last 60 days. Further, for 2017, EPS is expected to increase over 100%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>