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Should Value Investors Buy Caesars Entertainment (CZR) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Caesars Entertainment (CZR - Free Report) is a stock many investors are watching right now. CZR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for CZR is its P/B ratio of 2.30. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.59. Over the past year, CZR's P/B has been as high as 4.50 and as low as 1.78, with a median of 2.79.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CZR has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.02.
These are only a few of the key metrics included in Caesars Entertainment's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CZR looks like an impressive value stock at the moment.
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Should Value Investors Buy Caesars Entertainment (CZR) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Caesars Entertainment (CZR - Free Report) is a stock many investors are watching right now. CZR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another notable valuation metric for CZR is its P/B ratio of 2.30. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.59. Over the past year, CZR's P/B has been as high as 4.50 and as low as 1.78, with a median of 2.79.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CZR has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.02.
These are only a few of the key metrics included in Caesars Entertainment's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CZR looks like an impressive value stock at the moment.