SiGMA Casino Analysis: Las Vegas Sands solidifies position as gaming industry leader
Las Vegas Sands Corp experienced a 1.08 percent increase in its stock price driven by strong buyer demand. The stock reached a value of (US) $58.00, surpassing the previous day’s close. Overall, LVS has shown a 5.21 percent increase over the past month.
During its performance over the last year, LVS stock reached a high of (US) $65.58 and a low of (US) $30.93.
Forecast of 139% increase YoY
Las Vegas Sands Corp currently has a market capitalization of around (US) $44.47 billion. Investment banking analysts forecast the company’s earnings per share (EPS) to be (US) $0.44, with expected growth to (US) $1.95 for fiscal year 2023 and (US) $3.1 for fiscal year 2024. This translates to projected EPS growth of 262.50 percent for 2023 and 59.00 percent for the following year.
Analysts estimate the company’s revenue for the quarter to be $2.37 billion, with a low estimate of $2.14 billion and a high estimate of $2.56 billion. The mean forecast indicates a significant sales growth of up to 126.6 percent compared to the same period for the last fiscal year. For 2023 analysts are projecting the company’s year-on-year (YoY) revenue to reach (US) $9.85 billion, representing a substantial 139.7 percent increase from the previous financial year.
Comparison of casino companies by market cap (Source: SiGMA)
Overall the average rating for the LVS stock is Buy, indicating an opportunity for investors looking to increase their holdings. The forecast is based on data provided by 19 analysts, with a scale of 1.00-5.00 and 5 being ‘a strong buy’. Four analysts rated the stock as a Hold, 14 recommend LVS as a BUY, and one gives it an overweight rating. No analysts rate the stock as underweight or SELL.
Insights on stock price are gained from revisions of short-term price movements and Las Vegas Sands Corp has not received any downward reviews in the past seven days. Looking at the stock’s technical picture, short-term indicators suggest that LVS is a Hold on average. Both medium-term and long-term indicators lean towards a 50 percent BUY.
Las Vegas Sands stands out among its competitors
The company’s significant focus on Macau stands out when compared for example with MGM Resorts and Wynn Resorts. The company divested its Las Vegas operations earlier this year, investing its resources towards its growth in Macau and Singapore. When Macau’s borders re-opened post pandemic, it was expected that the gaming sector would revitalise the region’s economy. Las Vegas Sands capitalised on this opportunity and recovered from the negative severe decline in revenue during 2020.
Although progress has been remarkable over the last two years, there is a great potential for the company to recover free cash flow to pre-COVID-19 level when Las Vegas Sands generated over (US) $4 billion in comparison. The strategic positioning of Las Vegas Sands in Macau is expected to solidify its position as a key player in the region.
Robust performance compared to competitors
In contrast, another industry competitor, DraftKings Inc (DKNG), climbed 1.14 percent for the day, but remains significantly lower when compared to its price a year ago. Similarly, MGM Resorts International (MGM) recorded a 2.12 percent increase in trading for the day, with an increase of 50.57 percent over the last year.
Notably, 56.79 percent of LVS shares are held by company insiders, while institutional holders own 41 percent. This promising outlook contribute to enthusiastic investor optimism which is still on the rise.
Las Vegas Sands Corp. (LVS) continues to demonstrate a robust performance compared to its competitors in the gaming sector. It has captured investors’ attention and inspired confidence, and remains at the forefront of the gaming industry.
LVS trades on the New York Stock Exchange as NYSE:LVS ($58.00 +1.8 percent )
