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Caesars (CZR) Down 53% in the Past Year: Is a Revival Likely?
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Shares of Caesars Entertainment, Inc. (CZR - Free Report) have plunged 52.9% in the past year, compared with the industry’s decline of 40.5%. The decline was primarily due to the coronavirus pandemic. However, the company is gradually recovering on the back of improving occupancy and robust regional performance. Let’s delve deeper and find out the factors that can revive the Zacks Rank #3 (Hold) company’s share price.
Factors Likely to Revive Performance
Improving occupancy is likely to drive the company’s performance. During first-quarter 2022, occupancy in Las Vegas reached 83%, with weekend and midweek occupancy attaining 95% and 77%, respectively. The upside was primarily driven by pent-up demand and solid booking trends. Going forward, the company is optimistic about booking trends as it is witnessing increased bookings for group and convention room nights. It expects an uptrend in bookings to sustain in 2022 and beyond. During first-quarter 2022, group rooms night represented nearly 13% of occupied room nights in Las Vegas, up from 11% in the second half of 2021
The company stated that it is focused on driving digital business during first-quarter 2022 through buyouts, especially in new markets, including New York and Louisiana. The company continues to benefit from robust demand for sports betting. As of Mar 31, 2022, it operates sports betting in 24 jurisdictions, 17 of which are mobile.
Caesars Entertainment has been benefiting from robust regional performance. In the fourth quarter, the company reported encouraging revenues and adjusted EBITDA. During the quarter, net revenues in the segment were $1,363 million compared with $1,191 million in the year-ago quarter. The segment’s adjusted EBITDA totaled $459 million compared with $393 million in the prior-year quarter.
Bluegreen Vacations carries a Zacks Rank #2 (Buy). BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 36.6% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BVH’s current financial year sales and earnings per share (EPS) indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.
Funko carries a Zacks Rank #2. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 21.8% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels.
Civeo sport a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have increased 72.8% in the past year.
The Zacks Consensus Estimate for CVEO’s 2022 sales and EPS suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.
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Caesars (CZR) Down 53% in the Past Year: Is a Revival Likely?
Shares of Caesars Entertainment, Inc. (CZR - Free Report) have plunged 52.9% in the past year, compared with the industry’s decline of 40.5%. The decline was primarily due to the coronavirus pandemic. However, the company is gradually recovering on the back of improving occupancy and robust regional performance. Let’s delve deeper and find out the factors that can revive the Zacks Rank #3 (Hold) company’s share price.
Factors Likely to Revive Performance
Improving occupancy is likely to drive the company’s performance. During first-quarter 2022, occupancy in Las Vegas reached 83%, with weekend and midweek occupancy attaining 95% and 77%, respectively. The upside was primarily driven by pent-up demand and solid booking trends. Going forward, the company is optimistic about booking trends as it is witnessing increased bookings for group and convention room nights. It expects an uptrend in bookings to sustain in 2022 and beyond. During first-quarter 2022, group rooms night represented nearly 13% of occupied room nights in Las Vegas, up from 11% in the second half of 2021
The company stated that it is focused on driving digital business during first-quarter 2022 through buyouts, especially in new markets, including New York and Louisiana. The company continues to benefit from robust demand for sports betting. As of Mar 31, 2022, it operates sports betting in 24 jurisdictions, 17 of which are mobile.
Caesars Entertainment has been benefiting from robust regional performance. In the fourth quarter, the company reported encouraging revenues and adjusted EBITDA. During the quarter, net revenues in the segment were $1,363 million compared with $1,191 million in the year-ago quarter. The segment’s adjusted EBITDA totaled $459 million compared with $393 million in the prior-year quarter.
Image Source: Zacks Investment Research
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Bluegreen Vacations Holding Corp. , Funko, Inc. (FNKO - Free Report) and Civeo Corp. (CVEO - Free Report) .
Bluegreen Vacations carries a Zacks Rank #2 (Buy). BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 36.6% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BVH’s current financial year sales and earnings per share (EPS) indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.
Funko carries a Zacks Rank #2. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 21.8% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels.
Civeo sport a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have increased 72.8% in the past year.
The Zacks Consensus Estimate for CVEO’s 2022 sales and EPS suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.