Caesars Entertainment Inc. (CZR) shares are trading at lower $67.84 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $73.73.
To add more color to this target, the company’s high over the last year is $74.92 and the low is $6.02. Over the last 52 weeks, CZR is up 28.73% while the S&P 500 is up 17.45%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CZR reported a profit of $762.0 million. Caesars Entertainment Inc. also saw revenues increase to $1.38 billion. In addition, CZR has free cash flow of -$314.0 million as of 09-2020. The company’s EBITDA came in at -$152.0 million which compares well with its peers.
CZR booked profit margins of -5.20%, its Return on Equity (ROE) is -11.10%, and its Return on Assets is -2.20%. All told, it is clear that, CZR needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CZR has a short ratio of 2.46 and outstanding shares of 208.28M.
CZR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.03 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -8.41. Caesars Entertainment Inc. CZR also noted assets of $36.24 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CZR has historically followed its peers on positive news.
All told, Caesars Entertainment Inc. CZR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CZR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Caesars Entertainment Inc. CZR is now commanding a market cap of 13.98B and a float of 199.45M. CZR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CZR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in CZR, either long or short, and we have not been compensated for this article.