As Kentucky Derby owner Churchill Downs bolted out of the gates on earnings, investors laid down their bets on casino and resort giant Las Vegas Sands, lifting LVS stock into a fresh buy zone. They've also rolled the dice on fellow casino stock Boyd Gaming as it tests the top of its own buy range.
In IBD Stock Checkup, LVS stock earns a strong 97 Composite Rating, behind only CHDN and BYD stock. The Leisure-Gaming/Equipment industry ranks a stellar No. 6 out of the 197 groups IBD tracks.
While Las Vegas Sands did not join Churchill Downs on the latest list of new buys by the best mutual funds, 59 funds with an A+ rating from IBD own shares of LVS stock, which has secured a spot on IBD Leaderboard.
An impressive B+ Accumulation/Distribution Rating and 1.4 up/down volume ratio offer further clear evidence of institutional demand.
Robust Rebound In Macau Pays Out For Las Vegas Sands
With five properties in Macau and an integrated resort in Singapore, Las Vegas Sands is a world leader in developing and operating integrated resorts. Iconic properties include The Venetian Macao, The Plaza Macao, The Parisian Macao and The Londoner Macao. Las Vegas Sands also owns and operates Sands Macao on the Macau peninsula.
A typical integrated resort combines hotel, casino, event, entertainment, retail and dining facilities under one roof.
The company's portfolio features a mix of leisure and business attractions, a wide range of restaurants, shopping malls and world-class entertainment.
Emerging from devastation of the hotel and travel industry caused by the coronavirus, the casino hotel giant made an impressive comeback.
In Q1, net revenue soared from $943 million in the prior-year quarter to $2.12 billion. Although based on comparisons to the prior-year quarter that showed a loss, Las Vegas Sands posted a 170% earnings increase in the first quarter to 28 cents per share. Analysts forecast 221% EPS growth in Q2, albeit compared to a loss in the second quarter of last year.
Wall Street sees Las Vegas Sands continuing its rebound, with estimates calling for a 63% rise in EPS in 2024.
LVS Stock Finds Support In Buy Zone
After reporting earnings on April 19, Las Vegas Sands gapped up in high volume, pushing it past a 60.40 buy point in a first-stage cup with handle pattern.
LVS stock reached a new high and climbed slightly out of buy range before easing back in light volume. Now back in the buy zone, Las Vegas Sands found support at its 21-day exponential moving average, a healthy sign the new breakout may have legs.
IBD's The New America recently profiled Churchill Downs, which owns and operates the fabled Kentucky Derby. After soaring on earnings, CHDN stock remains extended, having held the bulk of its huge move.
Like Las Vegas Sands, Boyd Gaming continues to test the top of its buy range.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
