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Las Vegas Sands (LVS) to Invest in Digital Gaming Prospects

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Las Vegas Sands Corp. (LVS - Free Report) recently announced plans to investment in digital technology. The entire idea of this investment is mainly focused on enhancing the company’s business-to-business space.

As part of its ongoing efforts, the company has been establishing a digital gaming investment group. The entire team is going to be led by Davis Catlin -- a veteran head of an industry-leading investment firm.

Las Vegas Sands is optimistic about its expertise and financial resources coupled with the investment team led by Catlin. By Catlin becoming a strategic investor, the company is expected to see significant opportunities and long-term growth prospects. Also, the company is extremely hopeful that investments in digital gaming technology are going to fetch adequate returns to the entity and its shareholders.

In this regard, Robert Goldstein, chairman and CEO of Las Vegas Sands, said, " Digital gaming and other related offerings are still very much in the early stages of development, and we believe there is an outstanding opportunity for us to invest in the technologies being developed."

Share Performance

Shares of Las Vegas Sands have gained 7.7% in the past year compared with the Zacks Gaming industry’s 51.7% rise. Although shares of the company have underperformed its industry for the past year, increased focus on business model, extensive non-gaming revenue opportunities and planned investment in new projects in Macao are likely to drive growth in the days ahead.

The coronavirus pandemic has negatively impacted the visitation. However, the company is optimistic about Macao recovery as visitation continues to increase in the region. The company informed that Macao March numbers are much better than January and February. However, the company has not been able to ascertain the timing of the full recovery. It has however announced continued recovery in 2021. The company will benefit from robust spending in Macao at the premium mass level from both gaming and retail perspectives. The company anticipates Macao to lead the recovery this year.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Las Vegas Sands currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the same space are Boyd Gaming Corporation (BYD - Free Report) , Red Rock Resorts, Inc. (RRR - Free Report) and Penn National Gaming, Inc. (PENN - Free Report) . Boyd Gaming and Red Rock sport a Zacks Rank #1 (Strong Buy), while Accel Entertainment carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Boyd Gaming has a three-five-year earnings per share growth rate of 19.8%.

Red Rock has a trailing four-quarter earnings surprise of 166.2%, on average.

Penn National’s 2021 earnings are expected to surge 157.2%.

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