With Las Vegas Sands Stock Climbed 45% In A Month, How Confident Are You?

-2.56%
Downside
66.40
Market
64.70
Trefis
LVS: Las Vegas Sands logo
LVS
Las Vegas Sands

Las Vegas Sands (LVS) stock is up 44.7% in 21 trading days. The stock looks fairly priced at the moment. Consider the following data:

  • Size: Las Vegas Sands is a $46 Bil company with $12 Bil in revenue currently trading at $66.99.
  • Fundamentals: Last 12 month revenue growth of 8.4% and operating margin of 23.0%.
  • Liquidity: Has Debt to Equity ratio of 0.35 and Cash to Assets ratio of 0.16
  • Valuation: Las Vegas Sands stock is currently trading at P/E multiple of 29.4 and P/EBIT multiple of 16.0
  • Has returned (median) 81.5% within a year following sharp dips since 2010. See LVS Dip Buy Analysis.

While we like to ride the momentum if the fundamentals check out – for LVS, see Buy or Sell LVS Stock – we are wary of bull traps. Specifically, it is worth trying to answer if things get really bad, and LVS drops 20-30% to $47 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. That is one way to look at stocks. The Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure.

Below are the details, but before that, as a quick background: LVS 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.

Relevant Articles
  1. How Will LVS Stock React To Its Upcoming Earnings?
  2. Las Vegas Sands Stock Near Crucial Support – Buy Signal?
  3. Las Vegas Sands Is Booming Again, But Watch The Price Tag
  4. LVS Testing Price Floor: Time to Load Up?
  5. S&P 500 Movers | Winners: HUM, CNC, CI | Losers: PLTR, LVS, WYNN
  6. LVS Stock Down -6.8% after 5-Day Loss Streak

2022 Inflation Shock

  • LVS stock fell 54.5% from a high of $66.20 on 15 March 2021 to $30.14 on 12 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
  • The stock is yet to recover to its pre-Crisis high
  • The highest the stock has reached since then is $66.99 on 11 November 2025 $66.99

  LVS S&P 500
% Change from Pre-Recession Peak -54.5% -25.4%
Time to Full Recovery Not Fully Recovered 464 days

 
2020 Covid Pandemic

  • LVS stock fell 49.1% from a high of $74.06 on 17 January 2020 to $37.68 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
  • The stock is yet to recover to its pre-Crisis high

  LVS S&P 500
% Change from Pre-Recession Peak -49.1% -33.9%
Time to Full Recovery Not Fully Recovered 148 days

 
2018 Correction

  • LVS stock fell 40.4% from a high of $81.27 on 18 June 2018 to $48.44 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
  • The stock is yet to recover to its pre-Crisis high

  LVS S&P 500
% Change from Pre-Recession Peak -40.4% -19.8%
Time to Full Recovery Not Fully Recovered 120 days

 
2008 Global Financial Crisis

  • LVS stock fell 99.0% from a high of $144.56 on 2 October 2007 to $1.42 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
  • The stock is yet to recover to its pre-Crisis high

  LVS S&P 500
% Change from Pre-Recession Peak -99.0% -56.8%
Time to Full Recovery Not Fully Recovered 1480 days

 
It is a good thing to keep in mind how low LVS could go during a downturn. And you should also check how the stock fared when compared with 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.