The broader market’s powerful “V” recovery off its mid-October lows recouped all of last month’s losses and then some, with the S&P 500 hitting new all-time highs this week. But not all sectors have kept pace, and it is in these underperforming areas where traders should look for rebound candidates that have the biggest upside potential left. Casino stocks are well off their yearly highs, made in early 2014. Investors jumped shipped as Chinese gaming revenue slowed thanks to Beijing’s anti-corruption crackdown. But I think the China fears have been greatly exaggerated, and I’m willing to bet on the house… Read More
The broader market’s powerful “V” recovery off its mid-October lows recouped all of last month’s losses and then some, with the S&P 500 hitting new all-time highs this week. But not all sectors have kept pace, and it is in these underperforming areas where traders should look for rebound candidates that have the biggest upside potential left. Casino stocks are well off their yearly highs, made in early 2014. Investors jumped shipped as Chinese gaming revenue slowed thanks to Beijing’s anti-corruption crackdown. But I think the China fears have been greatly exaggerated, and I’m willing to bet on the house at these depressed levels. Specifically, I like the risk/reward on Las Vegas Sands (NYSE: LVS). It trades with a current P/E ratio of 19, which is in line with the S&P 500 and below its peers. Plus, its 3.2% dividend yield should help put a floor under the shares. On the charts, there was a bullish divergence early this month with a new price low under $58 but no new highs in volatility. This likely signals a bottom. In addition, the sideways action between $58 and $65 over the past two and a half months appears to be forming a… Read More