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Caesars Entertainment (CZR) Dips More Than Broader Markets: What You Should Know

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Caesars Entertainment (CZR - Free Report) closed the most recent trading day at $41.38, moving -1.99% from the previous trading session. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 10.47%.

Heading into today, shares of the casino and resort operator had lost 3.48% over the past month, lagging the Consumer Discretionary sector's gain of 2.53% and the S&P 500's gain of 2.61% in that time.

Caesars Entertainment will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. On that day, Caesars Entertainment is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 102.84%. Our most recent consensus estimate is calling for quarterly revenue of $2.73 billion, up 19.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.90 per share and revenue of $11.43 billion. These totals would mark changes of +124.93% and +5.63%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Caesars Entertainment. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 21.59% lower. Caesars Entertainment currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Caesars Entertainment is holding a Forward P/E ratio of 47.03. Its industry sports an average Forward P/E of 24.63, so we one might conclude that Caesars Entertainment is trading at a premium comparatively.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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