Stocks ticked lower as markets processed the Federal Reserve’s latest policy decision and forward economic projections. The latest decision to pause rate hikes signals that the Fed has transitioned from the escalation stage of the rate cycle to the calibration stage. But Fed Chair Powell’s statement following the decision left little room for doubt that the Fed is fully prepared to resume increasing interest rates in the coming months.
With American consumers expected to continue cutting back on discretionary spending in the second half of the year, many investors are seeking stocks with exposure to international markets. Today’s recommendation has significant exposure to one area in particular where a robust recovery in consumer spending is underway.
Las Vegas Sands (LVS)
With American consumers expected to continue cutting back on discretionary spending in the second half of the year, resourceful investors have taken a shine to leisure names with significant exposure in China, where a robust recovery in travel and tourism spending is underway. As the U.S. consumer softens, Macau-centric Las Vegas Sands has been gaining steam.
While travel restrictions impacted LVS’s Q1 performance, Wall Street is enthusiastic about the company’s performance throughout 2023 and the years ahead. Stifel recently upped its 12-month price target for the stock to $73 from $66 on the attractive risk/reward setup, stating, “If the U.S. consumer does decline, the pent-up demand from China’s and Singapore’s only gaming market should be healthy for another 12 months.”
LVS has risen 22% year to date and currently holds an 80% Buy rating. The pros covering the stock see a 47% upside over the next twelve months, a figure which has risen 10% over the past 30 days.
