Las Vegas Sands Is Booming Again, But Watch The Price Tag

Las Vegas Sands stock (NYSE: LVS) has been on a tear. The casino and resort giant, best known for its luxury properties in Macau and Singapore, has surged over 50% in the past six months, compared to 25% for the S&P 500. It’s a striking rebound for a company that only recently was climbing out of the pandemic slump.

The rally has been fueled by strong earnings, a rebound in Asian travel, and a renewed sense of investor confidence. In the latest quarter, revenue climbed 15% to $3.2 billion, profitability improved, and management reinforced its optimism with $800 million in share buybacks. Attention is also building around the $8 billion Marina Bay Sands expansion in Singapore, which will strengthen the company’s presence in luxury tourism and large-scale events. With travel across Asia continuing to recover, Sands appears well-positioned for growth. Still, after such a steep run, valuation is the sticking point — the business looks healthy, but the stock may already be priced for perfection. We discuss more below.

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The Case for Optimism

There’s plenty to like here. Revenue growth has been robust, and profitability is trending upward. Over the past twelve months, Sands generated roughly $2.5 billion in operating income with margins near 22%. The balance sheet looks stable — about $3.5 billion in cash against $16 billion in debt — and the company continues to reinvest in its properties while rewarding shareholders.

For long-term investors, this kind of operational momentum and disciplined capital return strategy is encouraging. Sands’ geographic focus — anchored in Asia’s most profitable gaming markets — gives it exposure to growing middle-class wealth and global tourism flows that could sustain demand for years to come.

But Risks Remain

Still, a strong business doesn’t always mean an attractive stock. Valuation is the key concern here. LVS currently trades at about 27 times earnings and over 65 times free cash flow, both well above market averages. Investors are paying a premium for growth — and that leaves little room for error.

History also tempers the bullish case. Sands has shown weak resilience during past downturns. In the 2008 financial crisis, the 2020 pandemic, and even the 2022 inflation shock, the stock fell sharply and has yet to reclaim prior highs. That volatility reflects its exposure to discretionary travel, regulatory shifts in Macau, and broader economic cycles.

So while current fundamentals look solid, the stock’s track record suggests investors should be cautious about assuming smooth sailing from here.

Bottom Line

If you already own LVS, holding through near-term volatility may be a sensible strategy. But for new investors, patience could pay off — the best buying opportunities in cyclical stocks often appear when enthusiasm cools.