Macau casino stocks are enjoying a powerful comeback — a key index tracking the sector has surged nearly 60% since its April lows. Traders are betting that the rally has more room to run as the special administrative region’s (SAR) gross gaming revenue (GGR) continues to strengthen.
Improved infrastructure easing travel from mainland China and a robust lineup of nongaming attractions — including concerts from major stars — are driving Macau’s recovery. “This (the June GGR report) is stronger than expected, thanks to the Jacky Cheung concerts and the continuing high VIP win rate,” noted Jefferies analyst Anne Ling. She added that July’s entertainment calendar remains solid, featuring Aaron Kwok and Sandy Lam performances.
Ling emphasized that Macau’s rebound is being led by premium mass players — visitors who spend not only at the tables but also on dining, entertainment, and retail experiences, further boosting integrated resort revenues.
Earnings Season Could Fuel Further Gains
With the second-quarter earnings season underway, strong results could extend the rally. Las Vegas Sands (NYSE: LVS) recently reported standout Macau performance, pushing its shares to multi-month highs. Analysts see this as a positive signal for other concessionaires yet to report, including Wynn Resorts (NASDAQ: WYNN).
Macau operators are widely expected to deliver earnings before interest, taxes, depreciation, and amortization (EBITDA) beats, suggesting the sector remains undervalued. “The setup for stocks appears to be improving, with EBITDA valuations in the ~8-10x range and better-than-expected growth,” Ling observed. Her top picks include Sands among US-based operators and Galaxy Entertainment from Hong Kong.
Sands Seen as Leading Macau Play
Among the three US-listed Macau concessionaires — MGM Resorts (NYSE: MGM), Sands, and Wynn — Sands stands out as the most direct Macau and Singapore play. Its flagship Marina Bay Sands remains one of the most profitable properties globally, offering a strong complementary earnings stream.
While Wynn has significant Macau exposure, MGM’s profile is weighed down by softening trends in its Las Vegas Strip operations. That dynamic makes Sands the preferred Macau stock for many investors.
“LVS remains a top Macau pick given its strong management team, capital returns, leading position in mass, and unrivaled capacity in rooms, tables, and nongaming amenities,” said Macquarie analyst Chad Beynon. “Additionally, Singapore continues to be an impressive source of strength and earnings.”
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