Why Analysts Are Bearish on Las Vegas Sands (LVS)?

We recently published a list of 5 Stocks That Analysts Are Bearish On. In this article, we are going to take a look at where Las Vegas Sands Corp. (NYSE:LVS) stands against other stocks that analysts are bearish on.

The S&P 500 is up 0.19% while the Dow index has surged up 0.31%. As the broader market booms, there are a few stocks that are lagging the market. Some of these stocks have a bearish outlook and the analysts are adjusting their ratings accordingly.

While the US economy seems comfortably on the path of recovery, certain sectors have more risks associated with them. In other cases, stocks receive a downgrade when they have already run up considerably and analysts do not see more upside despite better earnings and macroeconomic environment. For investors, it is vital to understand why stocks receive a downgrade so they can plan to shift their investments accordingly.

We looked at 5 stocks that analysts are bearish on. To come up with the list of 5 stocks that analysts are bearish on, we looked at stocks that recently received a downgrade and have a market cap of at least $1 billion.

The dazzling Las Vegas Strip lined with luxury Integrated Resorts, seen from a high elevation.

Las Vegas Sands Corp. (NYSE:LVS)

Las Vegas Sands Corp. (NYSE:LVS) had a difficult December but even that pales in comparison to its YTD returns of -12.38%.  Morgan Stanley made matters worse when it downgraded the company’s shares from Overweight to Equal-weight. The investment bank believes all the upside is already priced in, highlighting 5 years of stock volatility where the stock hasn’t really broken away in either direction.

J.P. Morgan analyst Stephen Grambling believes the company’s Macau operations are being overestimated and has estimated its growth below what other analysts on Wall Street are predicting. He cites the deflation and housing crisis in China as the main reason for this pessimism, but the possibility of a US-China trade war is also a threat.

Once Las Vegas Sands’ (NYSE:LVS) renovation works at the Londoner and Venetian arena are complete, it will be able to focus on its business better. However, as far as the stock is concerned, even the positive developments associated with this are priced in according to analysts.

Overall, LVS ranks 4th on our list of stocks that analysts are bearish on. While we acknowledge the potential of LVS as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as LVS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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