Last Updated: 13 Nov 2024
Executive Summary
Caesars Entertainment Corporation (CZR) is a leading hotel and casino entertainment company with a significant market capitalization of $8.5 billion. Despite recent financial challenges, CZR has shown signs of improvement in its latest quarterly earnings report. The company's strong brand recognition, diverse portfolio of properties, and focus on cost optimization position it well for future growth.
Company Overview
Caesars Entertainment operates over 50 properties across the United States, including iconic casinos in Las Vegas, Atlantic City, and Reno. The company's portfolio includes well-known brands such as Caesars Palace, Harrah's, and Horseshoe. CZR also offers a range of entertainment options, including live shows, dining, and gaming.
Fundamental Analysis
Revenue: CZR's revenue for the trailing twelve months (TTM) was $11.3 billion, representing a slight decline of 0.04% year-over-year.
Earnings: The company reported a net loss of $1.68 per share for the TTM, primarily due to impairment charges and other non-recurring expenses.
Profitability: CZR's profit margin for the TTM was -0.032%, indicating that the company is currently operating at a loss. However, its operating margin was 0.224%, suggesting that the company is generating positive cash flow from its operations.
Valuation: CZR's forward price-to-earnings (PE) ratio is 34.36, which is above the industry average. The company's price-to-sales (P/S) ratio of 0.758 is in line with its peers.
Technical Analysis
Trend: CZR's stock has been trading in a downtrend since mid-2022, with the latest price of $39.43 below its 50-day and 200-day moving averages.
Support and Resistance: Key support levels for CZR include $35 and $30, while resistance levels include $45 and $50.
Technical Indicators: The relative strength index (RSI) for CZR is currently at 42, indicating that the stock is neither overbought nor oversold. The moving average convergence divergence (MACD) indicator is below the zero line, suggesting that bearish momentum is dominant.
Short Term Outlook
In the short term, CZR's stock price is expected to remain volatile. The company's financial performance has been mixed, and the overall market sentiment remains cautious. Technical indicators suggest that the stock may continue to trade within its current range.
Long Term Outlook
Over the long term, CZR has the potential for significant growth. The company's strong brand, diverse portfolio, and focus on cost optimization provide a solid foundation for future success. The recovery of the travel and hospitality industry is expected to benefit CZR, and the company's expansion plans into new markets should drive additional revenue.
Analyst Recommendations
Analysts have a mixed view on CZR's stock. The consensus analyst rating is "Hold," with three analysts recommending a "Strong Buy," ten recommending a "Buy," four recommending a "Hold," one recommending a "Sell," and none recommending a "Strong Sell." The average analyst target price is $53.56, implying a potential upside of approximately 35% from the current price.
