Las Vegas Sands Corp Stock Buy Recommendation Reiterated (LVS)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Las Vegas Sands (NYSE: LVS) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 19.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LAS VEGAS SANDS CORP has improved earnings per share by 13.1% 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 $1.85 versus $1.56 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $1.85).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry average. The net income increased by 14.6% when compared to the same quarter one year prior, going from $498.94 million to $571.96 million.
  • Net operating cash flow has increased to $885.52 million or 32.67% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.77%.
  • Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 25.01% which was in line with the performance of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

Las Vegas Sands Corp. develops, owns, and operates integrated resorts in Asia and the United States. Las Vegas Sands has a market cap of $47.1 billion and is part of the services sector and leisure industry. The company has a P/E ratio of 30.00, above the S&P 500 P/E ratio of 18.00. Shares are up 23.6% year to date as of the close of trading on Wednesday.

You can view the full Las Vegas Sands Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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