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Caesars Entertainment (CZR) Moves 5.3% Higher: Will This Strength Last?

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Caesars Entertainment (CZR - Free Report) shares soared 5.3% in the last trading session to close at $46.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.7% loss over the past four weeks.

Shares of CZR appreciated after it released its preliminary fourth-quarter 2023 results. Per the results, the company expects its net revenues between $2.82 billion and $2.84 billion, compared with the prior year’s reported value of $2.82 billion. The net loss is anticipated between $157 million and $4 million compared with $148 million reported in 2022. Furthermore, the to-be-reported quarter’s occupancy rates in the Las Vegas segment increased to 97.9% from 95.5% reported in the year-ago period.

This casino and resort operator is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +190.9%. Revenues are expected to be $2.91 billion, up 3.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Caesars Entertainment, the consensus EPS estimate for the quarter has been revised 17.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CZR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Caesars Entertainment is part of the Zacks Leisure and Recreation Services industry. Lindblad Expeditions (LIND - Free Report) , another stock in the same industry, closed the last trading session 1% higher at $8.72. LIND has returned -17.8% in the past month.

Lindblad Expeditions' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.30. Compared to the company's year-ago EPS, this represents a change of +52.4%. Lindblad Expeditions currently boasts a Zacks Rank of #4 (Sell).


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