Las Vegas Sands: Buy or Pass?

Early Bird Prime for August 18, 2024

2024 has been a year to forget for casino stocks, and Las Vegas Sands (NYSE: LVS) is no exception. 

The stock has taken a nosedive, plummeting 21.35% this year. To put it in perspective, the price is now lower than it was during the pandemic.

With its recent price drop, the stock has been incredibly volatile.

High inflation and interest rates have been problems in 2024, reducing consumers' discretionary spending power. People are tightening their belts, and unfortunately, that means fewer trips to the casino. After all, it’s hard to justify a weekend in Vegas when you’re worried about the price of eggs.

Argus Research downgraded Las Vegas Sands to a Hold this past week. They cited earnings headwinds and market challenges, which is analyst-speak for “things aren’t looking great.” 

To make matters worse, the stock hit its 52-week low two weeks ago.

On the flip side, the outlook for the casinos and gaming sub-industry is surprisingly positive. There’s talk of pent-up demand from the pandemic, which could benefit major casino operators like Las Vegas Sands.

If you’re considering buying the stock now, you’re essentially buying it on the dip. 

So, should you buy Las Vegas Sands stock now or avoid it? Well, here’s the answer:

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