Here’s What Makes Las Vegas Sands Corp. (LVS) an Attractively Valued Opportunity - InvestingChannel

Here’s What Makes Las Vegas Sands Corp. (LVS) an Attractively Valued Opportunity

ClearBridge Investments, an investment management company, released its “ClearBridge Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy outperformed its benchmark, the Russell 1000 Value Index, in the fourth quarter. In the quarter, the strategy gained in 10 of the 11 sectors it was invested in on an absolute basis. The energy and healthcare sectors were the leading contributors however the communication services sector detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Value Equity Strategy highlighted stocks like Las Vegas Sands Corp. (NYSE:LVS) in the Q4 2022 investor letter. Headquartered in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE:LVS) owns and operates resorts. On March 1, 2023, Las Vegas Sands Corp. (NYSE:LVS) stock closed at $58.57 per share. One-month return of Las Vegas Sands Corp. (NYSE:LVS) was 2.04%, and its shares gained 38.23% of their value over the last 52 weeks. Las Vegas Sands Corp. (NYSE:LVS) has a market capitalization of $44.763 billion.

ClearBridge Value Equity Strategy made the following comment about Las Vegas Sands Corp. (NYSE:LVS) in its Q4 2022 investor letter:

“We also initiated a new position in Las Vegas Sands Corp. (NYSE:LVS), in the consumer discretionary sector, which owns and operates several high-profile resorts and casinos in Macau and Singapore. One of the highest probability macro events we anticipate in 2023 is a China reopening, with forecasts (and the Chinese government itself) targeting over 5% growth. A big driver of this growth will be the massive pent-up demand for travel and entertainment after almost three years of being locked down and accumulating a mountain of private savings. We felt that Las Vegas Sands was an attractively-valued opportunity to capture the Chinese reopening, and specifically an eventual rebound in Macau from historically depressed levels. Las Vegas Sands is yet another example of a name supported by strong earnings growth that should generate positive performance, regardless of recession potential, due to the downside protection afforded by its solid free cash flow generation from already reopened destinations in Singapore. When combined with the material upside as earnings and cash flow gap up on a Macau reopening, we believe the risk/reward tradeoff is heavily underappreciated from the market and were able to capitalize and enter the stock at an extremely compelling entry point.”

hotel, luxurious, swimming pool, vacation, holiday, jordan, dead sea, leisure Francesco Dazzi / Shutterstock.com

Las Vegas Sands Corp. (NYSE:LVS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Las Vegas Sands Corp. (NYSE:LVS) at the end of the fourth quarter which was 48 in the previous quarter.

We discussed Las Vegas Sands Corp. (NYSE:LVS) in another article and shared the list of most valuable hotel companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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