Shares of Las Vegas Sands Corp. (LVS - Free Report) rallied to a 52-week high of $63.38 on Nov 28. However, the company ended the day’s trading a trifle lower at $62.55. Meanwhile, year to date, the stock has returned nearly 43%.
Notably, gross gaming revenues (GGR) for the month of October rose 8.8% on a yearly basis to approximately $2.7 billion or 21.8 billion patacas, per the Macau Gaming Inspection and Coordination Bureau. This third successive rise in October, after 26 months of decline, continued the revival in Macau.
On Sep 13, 2016, the company opened The Parisian Macao, an integrated resort which includes a 253,000-square-foot casino, approximately 3,000 rooms and suites; roughly 340,000 square feet of retail and dining space; a meeting room complex of around 63,000 square feet; and a 1,200-seat theater.
In fact, the opening of The Parisian Macao along with Wynn Resorts Ltd.’s (WYNN - Free Report) Wynn Palace (opened on Aug 22) is a major reason for the turnaround in gambling revenues in Macau.
Notably, the Macau region has been struggling over the past few quarters due to the Chinese government’s anti-graft corruption drive, which had been keeping VIP gamblers at bay, thereby hurting revenues. However, the company’s consistent efforts to boost tourism and traffic in Macau yielded results. The company had managed to turn around its operations in the region as evident from its third-quarter of 2016 results.
The Macao portfolio experienced strong visitation in the quarter on the back of Las Vegas Sands’ market-leading hotel, retail and entertainment offerings. Moreover, focus on diversification and growth in the mass and non-gaming market should continue to mitigate the effects of a slowdown in the VIP gaming business and aid margins.
Particularly, Las Vegas Sands is positive on The Parisian Macao opening and expects the resort to continue to attract tourists and leisure gamblers, thereby helping it to scoop up revenues.
Moreover, 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. Thus, high occupancy rates in the Las Vegas properties should continue to drive growth.
Zacks Rank & Stocks to Consider
Las Vegas Sands presently has a Zacks Rank #1 (Strong Buy). Other equally ranked stocks in the sector include MGM Resorts International (MGM - Free Report) and Melco Crown Entertainment Limited . You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MGM Resorts full-year 2016 earnings climbed 89.2% over the last 30 days. Further, for 2016, EPS is expected to grow over 100%.
Melco Crown posted positive earnings surprises in each of the last four quarters, with an average beat of 102.92%. The Zacks Consensus Estimate for Melco Crown’s 2016 earnings moved up 70% over the last 30 days.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>