The Best Stock in Nevada: Las Vegas Sands
We analyzed publicly traded companies based in the Silver State to identify the best stock in Nevada to buy now.
A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.
Las Vegas Sands by the Numbers
- Headquarters: Las Vegas
- Share price: $64.34
- Market value: $51.0 billion
- Price-earnings ratio: 26
(Prices and data are as of June 22, 2017)
Las Vegas Sands develops casinos in the U.S. and Asia, with the bulk of revenues coming from properties in Singapore and the Chinese gambling mecca of Macau.
After more than a two-year slide in the wake of Chinese government regulations, Macau gaming revenues finally bottomed in late 2016. The timing couldn’t have been better for Sands, which unveiled the Parisian Macau in September. The mammoth casino is part of four interconnected Sands hotels on the glitzy Cotai strip that combine for a staggering 13,000 hotel rooms, 840 retail stores and 1.7 million square feet of meeting and convention space. Given Sands’ leadership in the Macau market and relatively stable prospects for its properties in Singapore, CFRA analyst Tuna Amobi sees earnings increasing by 22% this year. He rates the stock a “strong buy.”
Although shares trade near his $65 12-month target price, the stock yields a generous 4.5%. Long-term prospects may be even better. Morningstar projects overall gambling revenue in Macau to increase gradually through 2018, at which point infrastructure projects aimed at improving traffic flow in and out of the gambling capital will bring on double-digit annual growth rates.