Las Vegas Sands shares are up about 28% over the past year.
One of the reasons for its superior performance is ironic, considering its name.
The markets in which it operates are experiencing notable growth. Investors may want to get in now, during a minor dip.
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Among casino and gaming stocks, few have performed as well as Las Vegas Arenas(NYSE: LVS) over the past year, and that outperformance should continue for several reasons.
The stock price of this well-known casino operator has risen about 28% over the past 12 months to $60, compared with 18% growth for the S&P 500. For the next 12 months, it has an average price target of $69 per share among the analysts who cover it, and in recent weeks it has seen upgrades of Jefferies at $78 per share and bank of america at $70 per share. This would suggest that you have a 15% to 30% advantage.
Image source: Getty Images.
There are three main catalysts that should allow Las Vegas Sands stock to outperform the market.
The first two reasons relate to the markets that Las Vegas Sands serves (and does not serve). Despite its name, Las Vegas Sands does not operate any casinos in Las Vegas, and that has been a good thing since tourism in Las Vegas dropped significantly last year.
According to the Las Vegas Convention and Visitors Authority, visitor volume to Las Vegas decreased 7.4% last year through November, the latest data available. Meanwhile, room occupancy fell 3% and the average daily rate fell 5%. Additionally, revenue per available room, a key hotel industry metric, decreased 8.4% year over year.
The only positive was gaming revenue, which was up 0.7% through November on the Las Vegas Strip.
The lack of tourism in Las Vegas really hurt Las Vegas Sands’ main competitors, MGM(NYSE: MGM) and Caesars(NASDAQ: CZR) since both have an important presence in Las Vegas. MGM shares are only up about 6% over the past year, while Caesars is down about 22%. MGM, for example, saw Las Vegas Strip casino revenue drop 5% in the latest quarter, while Strip theater revenue fell 11%. The numbers are similar for Caesars: Las Vegas revenue fell 5% in the latest quarter and 10% in the prior nine months.
All of the casinos Las Vegas Sands owns are in Macau and Singapore, and those markets have been booming. In 2025, Macau generated a record 40 million visitors, up 15% year-on-year and surpassing the pre-pandemic high of 2019. And Macau officials expect another record in 2026, with visits expected to increase by around 8%.
This translated into big business for Las Vegas Sands, as revenue from its Macau properties increased 8% year over year to $1.9 billion in the latest quarter.
Meanwhile, its Marina Bay Sands casino in Singapore saw its revenue soar 56% in the latest quarter to $1.4 billion. Singapore is also seeing a surge in tourism, with visits up about 3% this year through November. In 2026, visits are expected to increase, approaching 2019 pre-pandemic levels.
So Las Vegas Sands got the full benefit of growth in Macau and Singapore, and was not dragged down by the waning appeal of Las Vegas. However, it’s worth noting that Las Vegas tourism officials are cautiously optimistic that visitation will rebound slightly in 2026 for Las Vegas, with predictions of about a 2.5% increase in visitors.
The third catalyst for Las Vegas Sands is its strong financials, which are among the best in the industry. With its cash flows from operations steadily increasing, reaching $2.7 billion in the third quarter over the past 12 months, it has been able to invest in its future growth.
Its biggest project is an $8 billion expansion of the Marina Bay Sands property in Singapore, adding a 570-suite ultra-luxury hotel with 200,000 square feet of meeting space and a 15,000-seat stadium. It is scheduled to open in 2031. It is also allocating $4.5 billion in capital expenditures in Macau (where it owns several properties) for improvements, attractions, meeting spaces and entertainment facilities through 2032.
Additionally, Las Vegas Sands is looking to build a luxury casino in Dallas like Marina Bay Sands, but that depends on gambling being legalized in Texas.
The other factor that makes Las Vegas Sands a good option is its valuation. The share price has fallen about 8% so far this year, and that could be because December gaming revenue in Macau came in below estimates, even though it was up 15% year over year. While it’s worth a watch, it’s not a huge concern as expectations have risen based on Macau’s growth as a gaming destination.
Additionally, SEC filings in December showed that CEO Robert Goldstein sold a significant portion of the company’s stock, but that could well be because he is cashing out shares ahead of his retirement in March.
The sell-off reduces the valuation somewhat, with the stock trading at 17 times forward earnings with a five-year price-to-earnings-growth (PEG) ratio of 0.82, suggesting it is undervalued relative to its long-term earnings growth expectations. Add it all up, and Las Vegas Sands looks like a decent bet, compared to many of its peers.
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Bank of America is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool holds and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.
3 Surprising Reasons to Bet Big on This Gaming Action was originally published by The Motley Fool
