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Bear of the Day: Caesars Entertainment (CZR)

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Caesars Entertainment (CZR - Free Report) , a diversified gaming and hospitality company, generates revenue through gaming operations, including mobile, online gaming, and sports betting. It also utilizes its hotels, restaurants, bars, entertainment, racing, sportsbook offerings, retail shops, and other services to attract customers to its properties.

Analysts have dialed back their earnings expectations across the board, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a closer look at how it presently stacks up.

Ceasars Entertainment

CZR shares have struggled so far in 2025, down roughly 18% and widely underperforming relative to the S&P 500. Quarterly results haven’t been strong overall relative to our consensus expectations, with the company falling short of the Zacks Consensus EPS estimate by an average of 67% across its last four releases.

Zacks Investment Research
Image Source: Zacks Investment Research

Muted sales growth has also been a driving force behind the poor share performance over recent years, as shown below. Sales of $2.9 billion in its latest period grew by a modest 1.9% YoY, which followed negative growth rates in each of the prior three periods.

Zacks Investment Research
Image Source: Zacks Investment Research

Nonetheless, the company remains positive, with Bret Yunker, CFO, stating –

“We continue to expect 2025 to benefit from meaningfully lower year-over-year capital expenditures and cash interest expense. When combined with strong operating fundamentals, free cash flow this year will show a significant improvement. Accelerating free cash flow in 2025 will allow us to continue to reduce debt alongside opportunistic share repurchases during market dislocations. To that end, we repurchased $100 million of our shares during April at an average price of $23.84 per share.”

Bottom Line

Negative earnings estimate revisions, resulting from soft quarterly results, paint a challenging picture for the company’s shares in the near term.

Caesars Entertainment (CZR - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.

For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.


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