Casino stocks have been see-sawing since the start of the year, with the majority of gambling and hospitality firms having had a rough time in terms of their stock price.
However, just because they fell doesn’t mean that cheap stocks should be avoided. There are certain criteria to consider when purchasing casino stock, and one is Las Vegas Sands.
Goldman Sachs thinks that by the year 2022, LVS will be able to climb back up and that buying the stock early in the year would be the wisest option. The investment bank did not invest much in Las Vegas Sands as a stock, but it did include it on its list of potential stocks to recover in 2022.
However, Goldman Sachs’ shortlisting of only the Las Vegas Sands as the sole gaming equity on its list, which doesn’t bode well for other assets in general.
Not All Is Lost for Casino Stocks
Despite Goldman Sachs’ focus on just Las Vegas Sands, both Fitch and JP Morgan see casinos in Macau as safe, thus their valuations should improve. In any event, high-quality stocks like Las Vegas Sands are trading at a premium.
A temporary fall in price is not an indicator of the stock’s long-term durability. Las Vegas Sands will be resuming its campaign for a casino resort in Japan, and the company’s Asia strategy has been effective over time.
Despite the fact that LVS sold a lot of real estate in Nevada during the pandemic, it is now targeting additional locations, including Texas, which it thinks can host a world-class casino resort as legislation lays the groundwork for such.
Meanwhile, LVSP is expected to sell its famous The Venetian and Sands Expo and Convention Center sites for $6.25 billion and close the sale, which will provide some financial stability for future growth plans. Macau and Singapore remain significant markets
Should You Buy LVS Stock Now?
LVS may be a good investment if you want to get into the sector, as it is currently trading at $37.66. The firm is one of the most resilient behemoths in the market, even though it has been eager to preserve its land-based dominance.
In 2021, the stock reached a trading high of $50, but it’s conceivable to see it climb in 2022, according to Sachs. Regardless, you should not invest in stocks if you want to profit within a year. The Las Vegas Sands equity is more of a long race than a sprint.
Meanwhile, CNBC’s Jim Cramer has dampened enthusiasm for gaming companies this year, advising that you should probably wait a while before buying.