Title: Where's Las Vegas Sands Stock Headed Next?
Las Vegas Sands' (LVS) stock, listed on NYSE, dipped by 9% since January 2024, contrasting the 24% surge in the S&P 500 index. Its peer, Wynn, mirrored its downfall with an 8% decrease during the same period. However, the impact of the pandemic wane is evident, as Las Vegas Sands witnesses a revival in vital markets due to pent-up demand and a spike in Chinese tourist spending.
China's economic stimulus, investing approximately 1 trillion yuan into its largest state-owned banks, is predicted to significantly benefit Macau. The anticipated surge in tourism in 2025, with 36 million estimated visitors, will undeniably boost Macau's economy. Visitor numbers are anticipated to surge due to the expansion of Beijing's Individual Visitor Scheme in eight additional mainland cities.
To stay competitive, Macau's casinos invest in advancements such as smart tables and enhanced bet options in baccarat, assuring a superior gaming experience. These modifications expand demand, maintaining their market edge. Investors seeking smooth gains over individual stocks can opt for the High-Quality portfolio, delivering remarkable returns over the past years.
In three quarters of 2024, LVS's revenue climbed by 13% to $8.4 billion, while its Macau and Singapore markets saw a 14% and 11% increase, respectively. The adjusted property EBITDA reached $3.3 billion, marking a 5% uptick from the previous year. The Marina Bay Sands contributed $1.5 billion, while Macau operations managed $1.8 billion between January and September 2024. The company's EPS rose by 39% to $1.51.
LVS achieved significant milestones: the launch of Londoner Grand in Macau and additional suites on the way. Singapore's renovation efforts continue, targeting a mid-2025 completion. LVS expressed interest in the New York market, submitting a proposal for a $5 billion casino resort in Nassau County, Long Island.
LVS's stock performance has been inconsistent, with annual returns fluctuating far more than the S&P 500. Returns were -37% in 2021, 28% in 2022, 3% in 2023, and 6% in 2024. Nonetheless, the High-Quality Portfolio, including 30 stocks, has been relatively more stable and outperformed the S&P 500 comprehensively during the past four years.
Comparing LVS peers' performance reveals various trends and insights, while the High-Quality Portfolio provides better returns with less risk compared to the S&P 500's more volatile journey.
Given the positive revival in Las Vegas Sands' (LVS) vital markets due to pent-up demand and increased Chinese tourist spending, LVS's revenue from its Macau and Singapore markets notably increased by 14% and 11% respectively in the first three quarters of 2024, contributing significantly to LVS's revenue of $8.4 billion, a 13% climb from the previous year. This revenue surge is expected to further boost LVS's revenue, as Las Vegas Sands, being part of the Las Vegas Sands Corporation (LVS), continues to thrive in the face of China's economic stimulus and the anticipated surge in Macau's tourism in 2025.