Among casino and gambling stocks, few have performed as well as Las Vegas Sands (LVS 0.70%) over the past year – and that outperformance should continue for a few reasons.

The stock price for this well-known casino operator has increased about 28% over the past 12 months to $60, compared to the S&P 500’s 18% growth. Over the next 12 months, it has a median price target of $69 per share among the analysts that cover it, and in recent weeks it got upgrades from Jefferies to $78 per share and Bank of America to $70 per share. This would suggest that it has upside of 15% to 30%.

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There are three primary catalysts that should allow Las Vegas Sands stock to beat the market.

Left Las Vegas

The first two reasons relate to the markets that Las Vegas Sands serves – and doesn’t serve. Despite its name, Las Vegas Sands does not operate any casinos in Las Vegas – and that has been a good thing as Las Vegas tourism dropped significantly last year.

According to the Las Vegas Convention and Visitors Authority, visitor volume to Las Vegas was down 7.4% last year through November, the latest data available. Meanwhile, room occupancy fell 3% and the average daily rate fell 5%. Further, revenue per available room, a key hotel industry metric, was off 8.4% year-over-year.

The only positive was gaming revenue, which ticked up 0.7% through November on the Las Vegas Strip.

The lack of Vegas tourism really hurt Las Vegas Sands major competitors, MGM (MGM 1.18%) and Caesars (CZR 2.13%) as both have major presences in Vegas. MGM stock is only up about 6% over the past year while Caesars is down roughly 22%. MGM, for example, saw Las Vegas Strip casino revenue dip 5% in the latest quarter while Strip room revenue fell 11%. The numbers are similar for Caesars with Las Vegas revenue down 5% in the last quarter and 10% over the prior nine months.

Macau is booming

All of the casinos that Las Vegas Sands owns are in Macau and Singapore, and those markets have been booming. In 2025, Macau generated a record 40 million visitors, up 15% year-over-year and surpassing the pre-pandemic 2019 high. And Macau officials expect another record in 2026, with visitation anticipated to rise about 8%.

This translated into big business for Las Vegas Sands as revenue from its Macau properties jumped 8% year-over-year to $1.9 billion in the latest quarter.

Meanwhile, its Marina Bay Sands casino in Singapore saw revenue skyrocket 56% in the last quarter to $1.4 billion. Singapore is also seeing rising tourism, as visitation is up about 3% this year through November. In 2026, visitation is anticipated to rise, nearing 2019 pre-pandemic levels.

So, Las Vegas Sands got the full benefit of the growth in Macau and Singapore, and wasn’t dragged down by the waning appeal of Las Vegas. However, it should be noted that tourism officials in Las Vegas are cautiously optimistic about visitation rebounding slightly in 2026 for Vegas, with predictions for about a 2.5% increase in visitors.

Positioned for growth

The third catalyst for Las Vegas Sands is its strong financials, which are among the best in the industry. With its steadily rising cash flows from operations, reaching $2.7 billion in Q3 over the trailing 12 months, it has been able to invest in its future growth.

Its biggest project is an $8 billion expansion of the Marina Bay Sands property in Singapore, adding 570-suite ultra luxury hotel with 200,000 square feet of meeting space and a 15,000-seat arena. It is set to open in 2031. It is also earmarking $4.5 billion in capital expenditures in Macau — where it owns several properties, — for upgrades, attractions, meeting space, and entertainment facilities through 2032.

In addition, Las Vegas Sands is looking to build a luxury casino in Dallas like Marina Bay Sands, but that is contingent on gambling being legalized in Texas.

Buy the dip?

The other factor that makes Las Vegas Sands a good option is its valuation. The stock price has dipped about 8% year-to-date, and that might be due to December gaming revenue in Macau coming in below estimates, even though it was up 15% year-over-year. While its worth watching, its not too much of a concern as expectations have risen based on the growth of Macau as a gaming destination.

Also, SEC filings in December showed that CEO Robert Goldstein sold off a significant chunk of company stock, but that could very well be because he is cashing out stock ahead of his March retirement.

The sell-off brings down the valuation a bit, as the stock is trading at 17 times forward earnings with a five-year price/earnings-to-growth (PEG) ratio of 0.82, which suggests that it is undervalued relative to its long-term earnings growth expectations. Tally it all up, and Las Vegas Sands looks like a decent bet, relative to its many of its peers.