Las Vegas Sands (LVS) has faced challenges since Macau banned junket-extended VIP credit in late 2021, leading to a decline in its high-roller segment. The company's stock has fallen over 30% since November 2022, but it is now exploring development opportunities in Texas, the UAE, Thailand, and Japan, which could significantly impact its future earnings.
Currently, LVS trades at a forward earnings multiple of 14x, near its historical low, suggesting it may be undervalued. The reinstatement of its dividend and a $6 billion buyback authorization, representing about 20% of its market cap, indicate management's confidence in the company's recovery.
Additionally, options prices are relatively low, with one-month implied volatility at 28%, compared to a five-year average of 39%. Analysts believe that LVS shares may be at an inflection point, as technical indicators show a potential bullish reversal.
Investors might consider options like the November $50 strike calls, priced at just over $2 per contract, to capitalize on potential earnings growth and market recovery