Goldman Sachs says Sands, Wynn offering attractive prices for growth stocks trading

New research from Goldman Sachs suggests that investors interested in reasonably priced growth equities in the consumer discretionary sector should consider Wynn Resorts (WYNN) and Las Vegas Sands (LVS).

In the bank’s investigation, these two casino stocks are identified as having growth at a reasonable price (GARP) potential.

With thirteen trading days remaining in the year, Sands has experienced a decline of 0.96%, whereas Wynn has risen by 4.28%. Neither has performed in comparison to the S&P 500. Goldman predicts that the sustained recuperation of Macau’s gross gaming revenue (GGR) could potentially result in an upsurge in the market value of these casino operators’ shares by 2024. Seven integrated resorts are under the supervision of Sands and Wynn in the Macau Special Administrative Region (SAR).

Goldman Sachs’s guarantee regarding growth companies that are priced reasonably corresponds with the viewpoint of a number of market analysts who regard firms exposed to Macau as exceptionally inexpensive and susceptible to unjustified negative sentiment.

Despite the dismal performance of Macau concessionaires, particularly Sands China, which has experienced a 20% or greater decline in sales and profits since the SAR reopened as a result of COVID-19 travel restrictions, there are still anticipations for increased revenue and profits in the coming year. The two gaming companies make up the median business in Goldman’s GARP screen, which is anticipated to experience a 13% increase in earnings over the course of the following year, compared to an 8% increase for the median S&P 500 component.

With the exception of Macau, Marina Bay Sands in Singapore has maintained its profitability for LVS. Encore Boston Harbor and Wynn’s properties in Las Vegas have contributed to this year’s record quarterly profits.

The shares of Sands and Wynn are regarded as possessing robust value attributes. In contrast to the average GARP stock, which trades at 16 times earnings, the median S&P 500 member is valued at 17 times.

Potential triggers for 2024 for both organizations include the acquisition of licenses to operate casinos in the New York metropolitan area’s downstate. In an effort to expand in the Asia-Pacific area, Wynn is presently engaged in the construction of a casino hotel within the United Arab Emirates.

Original story by: Casino.org