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Here's Why Caesars Entertainment (CZR) is Up 27% in 6 Months
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Caesars Entertainment, Inc. (CZR - Free Report) is benefiting from rise in occupancy, sports betting expansion and strategic partnerships. Shares of the company have gained 26.9% in the past six months, compared with the industry’s increase of 4.8%.
This Zacks Rank #2 (Buy) company’s sales and earnings in 2023 are likely to witness growth of 5.6% and 131.5%, respectively, year over year. The company also has a VGM Score of A.
Let’s delve deeper.
Growth Drivers
The company continues to benefit from robust occupancy. During third-quarter 2022, occupancy in Las Vegas reached 94%. The upside was primarily driven by pent-up demand and solid booking trends.
Going forward, the company is optimistic about the booking trends as it is witnessing increased bookings for group and convention room nights. The company anticipates an uptrend in bookings to continue in 2022 and beyond.
Caesars Entertainment revealed that while attrition remains higher than normal, it began witnessing the return of conventions to Las Vegas. The company expects the return of the group and convention business and entertainment offerings to drive incremental demand in the Las Vegas market.
The company is also focusing on sports betting to drive growth. To this end, the company formed a new Caesars Digital segment comprising sports betting, iGaming and poker.
Image Source: Zacks Investment Research
CZR integrated its digital offerings with Caesars Rewards at online and physical casinos. As of Sep 30, the company operated sports betting in 27 jurisdictions, 19 of which were mobile. Also, it stated the availability of iGaming offerings in five jurisdictions.
Additionally, Caesars Entertainment continues to focus on partnerships to drive growth. The company has expanded its partnership with the Arizona Diamondbacks and Caesars Superdome. William Hill, part of Caesars Entertainment, opened its first sportsbook inside U.S. sports complex at the world-famous Capital One Arena in 2020.
Meanwhile, CZR is committed toward expanding relationships with leagues and professional sports teams. To this end, it has formed partnerships with the NBA, NHL and MLB. Also, it is the official casino sponsor and sports betting partner of the NFL.
Monarch Casino currently sports a Zacks Rank #1 (Strong Buy). MCRI has a trailing four-quarter earnings surprise of 9.1%, on average. The stock has gained 22% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MCRI’s 2022 sales and earnings per share (EPS) indicates growth of 21.1% and 29.2%, respectively, from the year-ago period’s reported levels.
Hyatt currently has a Zacks Rank #2. H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has increased 22.6% in the past year.
The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates a surge of 91.9% and 121%, respectively, from the year-ago period’s reported levels.
Wyndham Hotels & Resorts currently has a Zacks Rank #2. WH has a long-term earnings growth rate of 7.9%. Shares of Wyndham Hotels & Resorts have increased 6.7% in the past three months.
The Zacks Consensus Estimate for WH’s 2023 EPS indicates a rise of 3% from the year-ago period’s level.
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Here's Why Caesars Entertainment (CZR) is Up 27% in 6 Months
Caesars Entertainment, Inc. (CZR - Free Report) is benefiting from rise in occupancy, sports betting expansion and strategic partnerships. Shares of the company have gained 26.9% in the past six months, compared with the industry’s increase of 4.8%.
This Zacks Rank #2 (Buy) company’s sales and earnings in 2023 are likely to witness growth of 5.6% and 131.5%, respectively, year over year. The company also has a VGM Score of A.
Let’s delve deeper.
Growth Drivers
The company continues to benefit from robust occupancy. During third-quarter 2022, occupancy in Las Vegas reached 94%. The upside was primarily driven by pent-up demand and solid booking trends.
Going forward, the company is optimistic about the booking trends as it is witnessing increased bookings for group and convention room nights. The company anticipates an uptrend in bookings to continue in 2022 and beyond.
Caesars Entertainment revealed that while attrition remains higher than normal, it began witnessing the return of conventions to Las Vegas. The company expects the return of the group and convention business and entertainment offerings to drive incremental demand in the Las Vegas market.
The company is also focusing on sports betting to drive growth. To this end, the company formed a new Caesars Digital segment comprising sports betting, iGaming and poker.
Image Source: Zacks Investment Research
CZR integrated its digital offerings with Caesars Rewards at online and physical casinos. As of Sep 30, the company operated sports betting in 27 jurisdictions, 19 of which were mobile. Also, it stated the availability of iGaming offerings in five jurisdictions.
Additionally, Caesars Entertainment continues to focus on partnerships to drive growth. The company has expanded its partnership with the Arizona Diamondbacks and Caesars Superdome. William Hill, part of Caesars Entertainment, opened its first sportsbook inside U.S. sports complex at the world-famous Capital One Arena in 2020.
Meanwhile, CZR is committed toward expanding relationships with leagues and professional sports teams. To this end, it has formed partnerships with the NBA, NHL and MLB. Also, it is the official casino sponsor and sports betting partner of the NFL.
Other Key Picks
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Monarch Casino & Resort, Inc. (MCRI - Free Report) , Hyatt Hotels Corporation (H - Free Report) and Wyndham Hotels & Resorts, Inc. (WH - Free Report) .
Monarch Casino currently sports a Zacks Rank #1 (Strong Buy). MCRI has a trailing four-quarter earnings surprise of 9.1%, on average. The stock has gained 22% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MCRI’s 2022 sales and earnings per share (EPS) indicates growth of 21.1% and 29.2%, respectively, from the year-ago period’s reported levels.
Hyatt currently has a Zacks Rank #2. H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has increased 22.6% in the past year.
The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates a surge of 91.9% and 121%, respectively, from the year-ago period’s reported levels.
Wyndham Hotels & Resorts currently has a Zacks Rank #2. WH has a long-term earnings growth rate of 7.9%. Shares of Wyndham Hotels & Resorts have increased 6.7% in the past three months.
The Zacks Consensus Estimate for WH’s 2023 EPS indicates a rise of 3% from the year-ago period’s level.