Caesars Entertainment Stock Testing Price Floor: Time to Load Up?
Caesars Entertainment (CZR) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($23.42 – $25.88), levels from which it has bounced meaningfully before. In the last 10 years, Caesars Entertainment stock received buying interest at this level 5 times and subsequently went on to generate 84.5% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 9/12/2017 | 6.7% | 23 |
| 10/27/2017 | 373.2% | 1435 |
| 4/9/2025 | 11.4% | 37 |
| 6/5/2025 | 22.9% | 35 |
| 8/13/2025 | 8.3% | 47 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For CZR Read Buy or Sell CZR Stock to see how convincing this buy opportunity might be.
Single stock can be risky, but there is a huge value to a broader diversified approach. Strategic asset allocation and diversification helps you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.
Here are some quick data points for Caesars Entertainment that should help decision:
- Revenue Growth: -0.1% LTM and 3.2% last 3 year average.
- Cash Generation: Nearly 0.4% free cash flow margin and 19.3% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for CZR was -0.2%.
- Valuation: CZR stock trades at a PE multiple of -26.4
- Opportunity vs S&P: Compared to S&P, you get lower valuation, lower revenue growth, and better operating margins
For quick background, Caesars Entertainment operates as a gaming and hospitality company managing 52 U.S. properties with approximately 55,700 slot machines, video lottery terminals, and e-tables across 16 states.
| CZR | S&P Median | |
|---|---|---|
| Sector | Consumer Discretionary | – |
| Industry | Casinos & Gaming | – |
| PE Ratio | -26.4 | 23.9 |
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| LTM* Revenue Growth | -0.1% | 5.2% |
| 3Y Average Annual Revenue Growth | 3.2% | 5.3% |
| Min Annual Revenue Growth Last 3Y | -0.2% | -0.1% |
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| LTM* Operating Margin | 19.3% | 18.6% |
| 3Y Average Operating Margin | 21.0% | 17.8% |
| LTM* Free Cash Flow Margin | 0.4% | 13.3% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
That said, CZR isn’t immune to major sell-offs. It plunged nearly 90% during the Covid pandemic, fell about 73% in the inflation shock, and dropped 35% back in 2018. These are significant declines, even with all the tailwinds the company might have. It shows that no matter how strong the fundamentals, stocks like CZR can still face deep dips when the market turns sour.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read CZR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.