Las Vegas is still the casino gambling capital of the world with Las Vegas Sands still in place as one of the local’s biggest players. However, the entire landscape of the real money casino industry from land-based gambling venues to full-service online casino sites continues to evolve from its traditional Las Vegas roots over the past number of decades.
Indeed, we track the financial state of affairs at Las Vegas Sands. Recently, Investor’s Business Daily addresses the current situation in a recent post on www.investors.com. Las Vegas Sands (LVS) is expected to release its latest earning report and all indications points toward a stock price that will reach a 19th-month low. Wall Street is still calling for a earnings per share gain of nine percent to $.84, according to Zacks Investment Research. Revenue is expected to increase seven percent to $3.415.
Despite the positive numbers, the performance of the stock continues to move in the opposite direction. The stocks last close was to 52.65, which was a decline of 1.3 percent. This is its worst level since March of 2017. This year, the stock rose to 81.45 in June until it went into a freefall over the past four months. Working against its favor is a IBD Composite Rating of 22. Even worse is a Accumulation/Distribution rating of E, which is the lowest possible. This latest rating is a measurement of its institutional buying and selling performance.
This is part of a downward trend for the entire Leisure-Gaming/Equipment industry group that ranks a dismal 172 out of 197 tracked groups.
Las Vegas Sands operates several properties in Las Vegas, but most of its revenue is sourced from its business interests in Macau. Two other Las Vegas operations with a strong presence in that region of China also experienced declines in the value of their stocks. MGM Resorts International (MGM) dropped 2.1 percent and Wynn Resorts (WYNN) experience a decline of 3.5 percent.
Caesars Entertainment (CZR) is in the news lately. Recently, they turn down a merger proposal from Golden Nugget’s parent company Tilman Fertitta. Furthermore, The recent loss of value in CRZ stock is four percent. Having said that, the Regional casinos are also affected. More specifically, Penn National Gaming (PENN) loses 3.5 percent of its stock value. However, Boyd Gaming (BYD) experiences a three percent decline.
Indeed, Las Vegas Sands’ plans to turn things around. Furthermore, they can hinge of the company’s ability to open one of the first legal Japan casinos. Furthermore, this can act as a negative catalyst. As a result, it can stimulate the sagging stock price. However, Morningstar analyst Dan Wasiolek adds the following observation.
“We see Las Vegas Sands as most likely to win one of the two urban gaming licenses, due to its strong resort experiences in Singapore and Las Vegas, where we believe regulation is more stringent than in Macau and the Philippines, and where problem gambling and crime issues have been controlled.
His report went on to add, “Additionally, Las Vegas Sands as shown itself to be a valued partner in Macau where it has invested $13 billion since 1999.”