LVS Testing Price Floor: Time to Load Up?
Las Vegas Sands (LVS) should be on your watchlist. Here is why – it is currently trading in the support zone ($48.42 – $53.52), levels from which it has bounced meaningfully before. In the last 10 years, the stock received buying interest at this level 7 times and subsequently went on to generate 17.9% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 7/24/2017 | 0.3% | 39 |
| 9/5/2017 | 5.0% | 29 |
| 10/18/2017 | 34.0% | 243 |
| 1/30/2019 | 17.5% | 93 |
| 9/25/2019 | 31.2% | 114 |
| 2/5/2021 | 19.1% | 38 |
| 1/13/2023 | 18.0% | 108 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For LVS Read Buy or Sell LVS Stock to see how convincing this buy opportunity might be.
Single stock can be risky, but there is a huge value to a broader diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index, and achieved returns exceeding 91% since its inception. Risk management is key – consider, what could long-term portfolio performance be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
Here are some quick data points:
- With Las Vegas Sands Stock Climbed 45% In A Month, How Confident Are You?
- How Will LVS Stock React To Its Upcoming Earnings?
- Las Vegas Sands Stock Near Crucial Support – Buy Signal?
- Las Vegas Sands Is Booming Again, But Watch The Price Tag
- S&P 500 Movers | Winners: HUM, CNC, CI | Losers: PLTR, LVS, WYNN
- LVS Stock Down -6.8% after 5-Day Loss Streak
- Revenue Growth: 1.6% LTM and 48.7% last 3 year average.
- Cash Generation: Nearly 4.7% free cash flow margin and 21.9% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for LVS was 1.6%.
- Valuation: LVS trades at a PE multiple of 25.1
- Opportunity vs S&P: Compared to S&P, you get higher valuation, higher 3 year average revenue growth, and better operating margins
Las Vegas Sands operates integrated resorts, casinos, and convention centers in Asia and the United States, including The Venetian Resort Hotel Casino and Sands Expo in Las Vegas.
| LVS | S&P Median | |
|---|---|---|
| Sector | Consumer Discretionary | – |
| Industry | Casinos & Gaming | – |
| PE Ratio | 25.1 | 24.0 |
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| LTM* Revenue Growth | 1.6% | 5.2% |
| 3Y Average Annual Revenue Growth | 48.7% | 5.3% |
| Min Annual Revenue Growth Last 3Y | 1.6% | -0.1% |
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| LTM* Operating Margin | 21.9% | 18.6% |
| 3Y Average Operating Margin | 18.3% | 17.8% |
| LTM* Free Cash Flow Margin | 4.7% | 13.3% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
That said, LVS isn’t immune to big drops. It plunged nearly 99% in the Global Financial Crisis, which is brutal. Even in smaller shocks, the stock took hits of 38% in 2018 and 48% during the Covid pandemic. The inflation shock saw a 54% dip. So, while the company might have solid fundamentals, extreme market events still hit it hard. Risk is real, no matter how promising things look.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read LVS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.