Yahoo Finance Shareholders have faith in loss-making Las Vegas Sands (NYSE:LVS) as stock climbs 11% in past week, taking one-year gain to 40%
Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Las Vegas Sands Corp. (NYSE:LVS) share price is up 40% in the last 1 year, clearly besting the market decline of around 15% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Zooming out, the stock is actually down 25% in the last three years.
Since the stock has added US$3.7b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
View our latest analysis for Las Vegas Sands
Given that Las Vegas Sands didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year Las Vegas Sands saw its revenue shrink by 5.7%. Despite the lack of revenue growth, the stock has returned a solid 40% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Las Vegas Sands is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Las Vegas Sands stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
It's good to see that Las Vegas Sands has rewarded shareholders with a total shareholder return of 40% in the last twelve months. Notably the five-year annualised TSR loss of 4% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Las Vegas Sands better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Las Vegas Sands .
We will like Las Vegas Sands better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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