As of December 11, 2023, leading investment bank Goldman Sachs has identified casino operators Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) as growth stocks trading at inexpensive prices. This recommendation comes as both stocks have underperformed the S&P 500 during 2023 but offer potential for upside in 2024.
Goldman Sachs has labeled these two casino stocks as “cheap” and potentially overlooked by investors. Shares of Las Vegas Sands are slightly down for the year, while Wynn Resorts has posted modest gains, but both have been overshadowed by the overall market performance.
Macau’s gross gaming revenue (GGR) recovery is expected to drive growth for these companies in the coming year. Additionally, the highly lucrative Marina Bay Sands in Singapore remains a strong source of growth for Las Vegas Sands, while Wynn’s properties in Las Vegas and Boston have shown record results this year.
Goldman Sachs projects that both casino operators will see improved earnings and revenue in 2024. In addition, both companies have expansion and licensing opportunities on the horizon, particularly in the Asia-Pacific region and the United Arab Emirates.
For investors looking to capitalize on growth potential at reasonable prices, Las Vegas Sands and Wynn Resorts are two favorable options in the consumer discretionary sector. Their affordable valuations and future catalysts make them worth considering for the year ahead.