Caesars Entertainment Faces Challenges Amid Market Downturn

With a market cap of $5.6 billion, Caesars Entertainment, Inc. (CZR) is a prominent casino entertainment company and a diversified gaming and hospitality provider. Headquartered in Reno, Nevada, the company operates various dining venues, bars, nightclubs, lounges, hotels, and entertainment spaces, alongside offering staffing and management services.

Current Market Position

Generally regarded as “mid-cap stocks,” companies valued under $10 billion, Caesars Entertainment perfectly fits this classification. The firm primarily operates under the well-known Caesars, Harrah’s, Horseshoe, and Eldorado brand names.

Stock Performance and Recent Trends

However, CZR’s stock has declined by 42.8% from its 52-week high of $45.93. In the last three months, shares have fallen 19.4%, underperforming the broader Nasdaq Composite ($NASX), which decreased by 8.7% in the same timeframe.

In the past six months, Caesars Entertainment has dropped 38.8%, significantly lagging behind NASX’s minor decrease of 1.8%. Notably, shares of CZR have seen a 37.2% decline over the last year, while the NASDAQ has appreciated by nearly 8.4%.

Since November 2024, the stock has consistently traded below its 50-day and 200-day moving averages.

Q4 Earnings and Digital Growth

On February 25, the company released its Q4 2024 financial results, and its shares experienced a slight dip the following day. Caesars reported an EPS of $0.05, while its net revenue was $2.8 billion, underperforming the consensus estimate of $2.81 billion. This shortfall contributed to a pullback in its stock. Positively, the digital segment’s full-year adjusted EBITDA increased significantly from $38 million in 2023 to $117 million in 2024.

Comparative Analysis and Analyst Outlook

In comparison, rival PENN Entertainment, Inc. (PENN) has shown stronger performance. Shares of PENN fell 2.4% in the last year and dropped 6.4% in the past six months.

Despite CZR’s recent struggles, analysts maintain an optimistic outlook on its future. Among the 14 analysts covering the stock, the consensus rating is “Strong Buy.” Currently, Caesars Entertainment is trading below the mean price target of $46.71.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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