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Caesars Entertainment, Inc. (CZR), headquartered in Reno, Nevada, is a global leader in the gaming and hospitality industry. With a market cap of $9.02 billion, Caesars operates a vast portfolio of resorts and casinos, offering world-class gaming, dining, entertainment, and hospitality experiences.
Companies valued at less than $10 billion are generally considered “mid-cap” stocks, and Caesars Entertainment fits into this category. Its commitment to delivering exceptional hospitality and gaming experiences positions Caesars as a global entertainment and leisure industry leader.
Shares of CZR are trading 17.5% below their 52-week high of $50.51, which they hit on Dec. 12, 2023. The stock has gained 6.8% over the past three months, underperforming the broader VanEck Gaming ETF (BJK) 12.2% return over the same time frame.
In the longer term, CZR is down 11.1% on a YTD basis, and the shares have declined 9.4% over the past 52 weeks. In comparison, BJK has gained 6.4% in 2024 and 13.6% over the past year.
However, CZR has been trading above its 200-day and 50-day moving averages since mid-September, indicating a bullish trend.
On Aug. 5, CZR shares fell more than 8% as recession concerns affected investors’ outlook on travel and casino stocks. On Jul. 30, CZR shares closed up more than 1% after reporting its Q2 results. Its loss per share was $0.56. The company’s revenue was $2.83 billion, missing Wall Street forecasts of $2.86 billion. Its same-store adjusted EBITDA stood at $1 billion. Its Caesars Digital adjusted EBITDA stood at $40 million, up 263.6% year over year.
CZR has marginally outperformed its rival, MGM Resorts International (MGM), which declined 11.3% on a YTD basis.
Despite CZR’s underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 16 analysts in coverage. The mean price target of $51.69 suggests a premium of 24% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
