Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Las Vegas Sands as such a stock due to the following factors:
- LVS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $506.6 million.
- LVS has traded 5.3 million shares today.
- LVS traded in a range 201% of the normal price range with a price range of $3.46.
- LVS traded above its daily resistance level (quality: 10 days, meaning that the stock is crossing a resistance level set by the last 10 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on LVS:
Las Vegas Sands Corp. develops, owns, and operates integrated resorts in Asia and the United States. The company owns and operates The Venetian Macao Resort Hotel, Sands Cotai Central, the Four Seasons Hotel Macao, the Plaza Casino, and the Sands Macao in Macau, the People's Republic of China. The stock currently has a dividend yield of 3.2%. LVS has a PE ratio of 19.1. Currently there are 10 analysts that rate Las Vegas Sands a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Las Vegas Sands has been 5.4 million shares per day over the past 30 days. Las Vegas Sands has a market cap of $49.9 billion and is part of the services sector and leisure industry. The stock has a beta of 2.09 and a short float of 4.8% with 2.61 days to cover. Shares are down 23.7% year-to-date as of the close of trading on Monday.
rates Las Vegas Sands as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- LAS VEGAS SANDS CORP has improved earnings per share by 29.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAS VEGAS SANDS CORP increased its bottom line by earning $2.79 versus $1.85 in the prior year. This year, the market expects an improvement in earnings ($3.64 versus $2.79).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 26.7% when compared to the same quarter one year prior, rising from $529.75 million to $671.43 million.
- 46.40% is the gross profit margin for LAS VEGAS SANDS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.52% is above that of the industry average.
- Net operating cash flow has increased to $1,258.22 million or 10.49% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.56%.
- You can view the full Las Vegas Sands Ratings Report.