Las Vegas Sands Stock Could Win Big as China Eases Zero-Covid Rules

China’s decision to ease its entry requirements for international travelers is a step toward a fuller reopening and away from a zero-Covid strategy. It also signals an eventual reopening of its Macau casinos.

It may be the right time to bet on Las Vegas Sands (ticker: LVS). The thesis is simple: Las Vegas Sands gets a little over two-thirds of its business from Macau, with the remainder coming from its Marina Bay Sands property in Singapore. The latter is an underappreciated asset that provides earnings visibility, while the former could see profits jump when Macau more fully reopens, following in the footsteps of Las Vegas and other U.S. cities, where gross gaming revenue has exploded above prepandemic levels. (The company sold its namesake U.S. properties in 2021.)

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