Las Vegas Sands Stock Is A Hidden Jewel In The Crown

LVS: Las Vegas Sands logo
Las Vegas Sands

The shares of popular online gaming and sports betting applications have skyrocketed since restriction measures brought the conventional gambling industry to a grinding halt in 2020. With the travel and tourism industry facing a downturn, even the prominent integrated resort operator Las Vegas Sands (NYSE: LVS) had to cut down on operational costs and capital expenses to preserve cash. After releasing fourth-quarter and full-year results in January, LVS stock has gained 9.7% supported by its strong fundamentals and a broader momentum observed in casino stocks. Interestingly, the company has an indirect presence in the sports betting market through William Hill’s marquee site at the Venetian and kiosks at the Palazzo. We compare the historical stock price trends between LVS and its peers WYNN, MGM, and PENN in an interactive dashboard analysis, LVS Stock Has 51% Chance Of A Rise Over The Next Month After Rising 9.7% In The Last 5 Days.

Sports Betting Industry & Sands’ Indirect Presence

After the Supreme Court overturned the Professional and Amateur Sports Protection Act (“PASPA”) in 2018, the sports betting and iGaming industry went live in 25 states. Currently, Nevada, New Jersey, and Pennsylvania account for almost 75% of sports betting handle. At maturity, the sports betting and iGaming industry is likely to reach $40 billion in the U.S. and $70 billion globally. Thus, multiple sports betting applications such as Fanduel, bet365, HardRock Café, BetMGM, and William Hill are eyeing a sizable share of the market.

Relevant Articles
  1. With The Stock Flat This Year, Will Q1 Results Drive Las Vegas Sands Stock Higher?
  2. Down 13% In Last Six Months, Will Macau Recovery Over Q4 Drive Las Vegas Sands Stock?
  3. Las Vegas Sands Stock Has Remained Flat This Year Despite Macau Recovery. What’s Next?
  4. Macau Recovery Will Drive Las Vegas Sands Q2 Results
  5. Singapore Strength And Macau Rebound Drive Las Vegas Sands Q1. What’s Next For The Stock?
  6. Is Las Vegas Sands Stock A Buy With Macau On Cusp Of Recovery?

William Hill, a popular sportsbook operator, has marquee sites at Las Vegas Sands’ Venetian and Palazzo properties. By acquiring CG Technology in 2019, William Hill gained a 32% share of Nevada’s sports betting market. Apart from Las Vegas Sands, William Hill also has marquee sites at the Cosmopolitan, Palms, Tropicana, and Silverton resorts.

How Have Sands’ Peers Performed?

In the last five days, LVS stock has gained 9.7% propelled by industry momentum and pent-up demand in Macau. Considering the last 21 day returns, LVS stock lost 7% in value whereas its peers MGM, WYNN, and PENN have gained 4%, 1.4%, and 35%, respectively. The stock looks even more attractive when the performance is compared with the S&P500 over the 10-day, 21-day, and YTD periods. Interestingly, the shares of Sands’ immediate competitors, MGM and WYNN are currently trading at pre-Covid levels, driven by the approval of their sports betting applications in multiple states. With reports of Sands’ potential entry into the sports betting industry and Sands’ indirect presence through William Hill marquee sites, we believe that the stock is a hidden jewel in the gaming portfolio.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams