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Nevada-based Las Vegas Sands Corp. (LVS) develops, owns, and operates six integrated resorts in Macau and Singapore. Valued at $31.3 billion by market cap, the company’s integrated resorts feature luxurious accommodations, casinos, entertainment, malls, celebrity chef restaurants, and other amenities.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Las Vegas Sands fits the bill perfectly. Given the company’s strong portfolio of high-end luxury resorts and casinos, its valuation above this mark is unsurprising.
Despite its strengths, Las Vegas Sands has dropped 23.6% from its 52-week high of $56.60 touched on Dec. 9, 2024. Moreover, LVS stock has plunged 15.2% over the past three months, underperforming the S&P 500 Index’s ($SPX) 4.4% decline during the same time frame.
Las Vegas Sands’ performance has remained grim over the longer term as well. While LVS gained 6.1% over the past six months, outpacing SPX’s marginal dip during the same time frame, LVS stock tanked 14.5% over the past 52 weeks, significantly underperforming SPX’s 9% gains over the past year.
To confirm the downturn, LVS has traded mostly below its 50-day moving average since mid-December 2024 and below its 200-day moving average since mid-January with some fluctuations.
Las Vegas Sands’ stock prices soared 11.1% in the trading session after the release of its mixed Q4 results on Jan. 29. Five of the six resorts owned by LVS are located in Macao and the slowdown in the Chinese economy after the COVID-19 pandemic severely impacted the company’s financials. Although spending per visitor has remained below pre-pandemic levels, it has observed some recovery during the quarter. While LVS observed a marginal decline in net revenues compared to the year-ago quarter to $2.9 billion, it surpassed the Street’s expectations by a notable margin which boosted investor confidence.
However, its adjusted net income dropped 10.8% year-over-year to $387 million and its adjusted EPS of $0.54 missed the analysts’ estimates by 10%. Following the initial surge, LVS stock prices remained in red for five subsequent trading sessions.
Meanwhile, LVS has notably outperformed its peer MGM Resorts International’s (MGM) 13.8% decline over the past six months and 27.8% drop over the past year.
Among the 16 analysts covering the LVS stock, the consensus rating is a “Moderate Buy.” Its mean price target of $57.92 suggests a 33.9% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
