Las Vegas Sands Bets Big on Premium Mass: Is it a Long-Term Play?

Las Vegas Sands LVS is doubling down on the premium mass gaming segment in Macau, positioning it as a central pillar of long-term growth. This strategic shift reflects evolving market dynamics, where the traditional base mass market has become increasingly competitive and less lucrative, especially as visitation patterns remain lopsided toward lower-spending day-trippers.During first-quarter 2025, executives acknowledged a tougher operating environment in Macau, noting that opportunities in the base mass segment have narrowed. In response, LVS has been focusing on leveraging its top-tier assets, particularly the newly completed 2,400-room Londoner Grand, to attract higher-value customers. The premium mass segment has shown greater resilience and higher profitability, aligning well with the company’s upscale portfolio.The pivot also involves greater emphasis on smart tables, side bets and tailored gaming experiences that increase player engagement and boost hold rates. Though EBITDA margins in Macau were under pressure this quarter, management expects improvement as revenues from the premium mass ramps up and the full inventory of the Londoner property comes online.This approach is not without risks. The premium mass arena is becoming increasingly crowded and LVS must defend its share amid stiff competition. However, with scale, product diversity and luxury appeal on its side, the company appears well-positioned to capitalize on the segment’s long-term potential.Ultimately, while short-term volatility in Macau may persist, LVS’ premium mass push could provide the foundation for durable growth, if execution keeps pace with ambition.Competitors Also Eye Premium Mass as Macau’s Battleground IntensifiesTwo key rivals, Wynn Resorts WYNN and MGM China, a subsidiary of MGM Resorts International MGM, are also aggressively targeting the premium mass segment in Macau, intensifying competition for high-value customers.Wynn Resorts has long been associated with luxury and VIP clientele, but is increasingly tailoring its offering toward premium mass players. Its refurbished properties in Cotai and premium-focused marketing campaigns position Wynn Resorts as a formidable player in this space.Meanwhile, MGM China is expanding its premium mass footprint by enhancing floor space and product offerings at its MGM Cotai and MGM Macau resorts. The company has also leaned into digital tools and loyalty programs to deepen engagement with premium mass guests.LVS’ Price Performance, Valuation and EstimatesLVS’ shares have gained 15.6% in the past month compared with the industry’s growth of 7.6%.LVS Price PerformanceImage Source: Zacks Investment ResearchDespite the recent gain, LVS is priced at a discount relative to its industry. It has a forward 12-month price-to-sales ratio of 2.86, which is below the industry average.LVS P/S (F12M)Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for 2025 and 2026 earnings per share is pegged at $2.44 and $2.81, indicating a rise of 7.5% and 15.3%, respectively.Image Source: Zacks Investment ResearchThe company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Las Vegas Sands Corp. (LVS): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report MGM Resorts International (MGM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks