Las Vegas Sands Corp. - Momentum

Las Vegas Sands Corp. (LVS) continues to charge higher after reporting an awesome 48% earnings surprise in late October. With a bullish next-year estimate calling for 76% growth, this Zacks #1 rank stock is no crap shoot on momentum.

Las Vegas Sands provided an update on its business on October 29 with Q3 results that handily beat expectations.

Third-Quarter Results

Revenue for the period was up 67% from last year to $1.91 billion. Earnings also came in strong at 34 cents, 48% ahead of the Zacks Consensus Estimate.

Not only did the company's domestic properties and interests perform well, it also saw solid gains in its international assets, with its Marina Bay Sands property in Singapore generating the highest adjusted property EBITDA and EBITDA margin in the company's history.

Its majority interest in Sands China was also strong, with revenue up 28% from last year to $1.08 billion.

Balance Sheet

Operating in a capital intensive business means Las Vegas Sands has had to borrow in order to fuel its growth, with a total debt load of $10.14 billion against $2.39 billion in unrestricted cash.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year adding 24 cents to 97 cents and the next-year estimate gaining 54 cents to $1.67, a bullish 73% growth projection.

Valuation

But in spite of the recent gains, the valuation picture is still in check with a PEG ratio .69, well below the benchmark for value of 1.

12-Month Chart

On the chart, shares have been strong since July, recently hitting a new multi-year high above $51 on the good quarter. The stochastic below the chart is signaling that shares are trading below over-bought territory. Look for support from the long-term trend on any weakness, take a look below.

Read the Aug 9 LVS article here

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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
 
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