Should you buy Las Vegas Sands shares in July as it eyes digital gaming opportunities?

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Jul 12, 2021
  • Las Vegas Sands said on Monday targets gaming technology opportunities to drive growth.
  • Las Vegas Sands stock is down nearly 23% since Mid-March amid competition from digital gaming platforms.
  • So with LVS eyeing digital gaming, is it an opportunity to buy now?

Las Vegas Sands Corp’s (NYSE:LVS) shares traded flat on Monday after the company revealed plans to explore opportunities in the digital gaming technologies market. The stock edged lower, just 0.70%. LVS stock is now down nearly 23% since 15th March. 

The decline could be an excellent opportunity to buy Las Vegas Sands shares before the end of the year. The company’s plans to invest in digital gaming technologies could augment its traditional gaming business in the coming years. 

Las Vegas Sands valuation and outlook

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From a valuation perspective, Las Vegas Sands shares trade at an attractive forward P/E ratio of 21.13. 

The company’s bottom line suffered from the pandemic and is yet to recover fully. Analysts expected LVS earnings to fall by 163% this year before skyrocketing 1,598% next year. Therefore, the stock price could decline further this year before recovering significantly next year.

Las Vegas Sands’ long-term growth will benefit significantly from its investment in digital gaming technologies. The company is building a team for the digital gaming industry. CEO Robert Goldstein said:

Sands is determined to grow its leadership position within the industry and is committed to doing that through strategic steps we think best position the company for future growth.

Source – TradingView

Technical overview: Las Vegas Sands stock could fall further before making a significant rebound

Technically, Las Vegas Sands stock appears to be experiencing bearish pressure in the daily chart. The stock is down several levels below the 100-day moving average. However, it is yet to hit oversold conditions, leaving some room for more downward movement.

Therefore, investors can target extended declines at approximately $47.45 or lower at $42.91. The key resistance levels are $54.05 and $59.34.

Bottom line: wait for the LVS stock to fall further before buying or look for shorting opportunities

In summary, Las Vegas Sands shares seem to be experiencing downward pressure in the daily chart. However, the share price is yet to hit oversold conditions allowing for more declines. 

Therefore, it is best to target a potential rebound lower than the current price position or short the stock to make profits as the price falls further. However, LVS looks reasonably exciting for long-term investors.

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