Latest news with #CZR
Yahoo
30-05-2025
- Business
- Yahoo
1 Volatile Stock on Our Buy List and 2 to Question
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren't prepared. At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock that could deliver huge gains and two best left to the gamblers. Rolling One-Year Beta: 1.63 Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties. Why Do We Think Twice About CZR? Sales were flat over the last two years, indicating it's failed to expand its business Incremental sales over the last five years were much less profitable as its earnings per share fell by 25.8% annually while its revenue grew Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders Caesars Entertainment is trading at $27.05 per share, or 1.5x forward EV-to-EBITDA. To fully understand why you should be careful with CZR, check out our full research report (it's free). Rolling One-Year Beta: 1.13 Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure. Why Are We Cautious About APG? Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.9 percentage points Underwhelming 3% return on capital reflects management's difficulties in finding profitable growth opportunities At $46.76 per share, APi trades at 22.1x forward P/E. Dive into our free research report to see why there are better opportunities than APG. Rolling One-Year Beta: 1.88 Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips. Why Are We Bullish on KLAC? Market share has increased this cycle as its 15.6% annual revenue growth over the last five years was exceptional Disciplined cost controls and effective management resulted in a strong two-year operating margin of 35.9%, and its operating leverage amplified its profits over the last five years KLAC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders KLA Corporation's stock price of $769.80 implies a valuation ratio of 24.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
JMP Maintains Bullish View on Caesars Entertainment (CZR) Despite Q2 Headwinds
Analysts at JMP Securities remain optimistic about Caesars Entertainment, Inc. (NASDAQ:CZR), restating their Market Outperform rating and $45 price target for the company on May 27. As Caesars Entertainment enters the second quarter, analysts have pointed out that the company has not faced any major macroeconomic obstacles that would have impacted its performance. The company's regional operations, which contribute around 45% of its projected 2025 EBITDAR, support the upbeat sentiment stated during the first quarter's results. With trailing three-month gaming revenue up 27% from the prior year, the New Orleans market remains a notable boost. However, complications like the Harveys Lake Tahoe renovations and the flooding at Harrah's Metropolis, which caused a 45% drop in April, are anticipated to cause issues for the quarter. That said, Caesars Entertainment, Inc. (NASDAQ:CZR) appears to have a promising future, based on recent online trends. After declining 7% in the first quarter of 2025 and 15% in the fourth quarter of 2024, the company's handle has increased somewhat this quarter, indicating that Caesars is effectively utilizing its clientele to boost profitability. While we acknowledge the potential of CZR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CZR and that has 100x upside potential, check out our report about the cheapest AI stock. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
1 S&P 500 Stock with Solid Fundamentals and 2 to Turn Down
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition. Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here is one S&P 500 stock that could deliver good returns and two that could be in trouble. Market Cap: $5.76 billion Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties. Why Are We Cautious About CZR? Sales were flat over the last two years, indicating it's failed to expand its business Earnings per share fell by 25.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $27.88 per share, Caesars Entertainment trades at 1.5x forward EV-to-EBITDA. To fully understand why you should be careful with CZR, check out our full research report (it's free). Market Cap: $8.87 billion With a history dating back to 1902 and roots in the McCann-Erickson agency, Interpublic Group (NYSE:IPG) is a marketing and communications holding company that owns agencies specializing in advertising, media buying, public relations, and digital marketing services. Why Do We Pass on IPG? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Forecasted revenue decline of 3.2% for the upcoming 12 months implies demand will fall even further Free cash flow margin shrank by 9.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Interpublic Group is trading at $24 per share, or 8.9x forward P/E. Check out our free in-depth research report to learn more about why IPG doesn't pass our bar. Market Cap: $15.34 billion Established in 1973, Deckers (NYSE:DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands. Why Does DECK Stand Out? 18.5% annual revenue growth over the last five years surpassed the sector average as its brand resonated with consumers Share repurchases over the last five years enabled its annual earnings per share growth of 31.3% to outpace its revenue gains Improving returns on capital reflect management's ability to monetize investments Deckers's stock price of $101.11 implies a valuation ratio of 16.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
VICI Properties: A Unique REIT With Reliable Dividends
VICI Properties (NYSE:VICI) is a REIT that may put off some investors due to its peculiar characteristics, such as its high dependence on certain tenants like Caesars Entertainment (NASDAQ:CZR) and the gaming business, which also has different characteristics from the real estate industry in general. As it turns out, the particularity of this REIT can also be a benefit for diversification and exposure to a growing industry. Warning! GuruFocus has detected 5 Warning Signs with VICI. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Other than that, VICI's fundamentals are also very attractive, with a price-to-FFO below 12x and a dividend yield of almost 6%. These multiples tend to be even more attractive when the stock is around or below $30, as the projected dividend per share of just over $1.70 makes this dividend yield reach something close to 6%. Generally, when investing in REITs or real estate companies we look for characteristics that allow for a more predictable and reliable income, such as wide moats, good tenants, an interesting business model, and so on. Although VICI is a little different from the industry average, it still manages to deliver these characteristics with robust fundamentals, a triple-net lease model, and a strong track record. The characteristics say a lot, but the track record says even more and proves the company's ability to deliver shareholder value. VICI has gone from an EBITDA adj. of $690 million in 2017 to $3.1 billion in 2024, reflecting good capital allocation, contract readjustments, acquisitions, and property upgrades. Source: VICI Investor Presentation Gaming exposure can also be interpreted positively. Gaming is a growing market, even with the shift in consumer preference to online bets, the physical experience remains very strong, as shown by the increase in Las Vegas visitors, which in 2024 grew by 2.1% YoY. In addition, both Las Vegas and the VICI properties are not just about gaming, but also about experiences, sports, retail outlets, music, and leisure events. Apart from the market that can grow organically and the contracts that are adjusted (linked to inflation and similars), VICI has a robust pipeline, with potential investments for expansion, acquisition, and development of properties linked to resorts and other types of experiences, as shown in the table below. This becomes more reliable as VICI's capital allocation trajectory is positive. Source: VICI Investor Presentation Diversification also occurs geographically, with the company owning gaming properties in 15 states and 1 Canadian Province, with Las Vegas accounting for 48% of this share, and other experiential properties in 17 states. This portfolio totals more than 60,000 hotel rooms, more than 500 F&B outlets, around 500 retail outlets, more than 50 entertainment venues, not to mention gaming, which has more than 4.2 million square feet. This translates into competitive advantages and a unique position in these industries and geographies. Therefore, for the future we can expect VICI to be able to maintain the trend shown in the chart below. A growing revenue and consequently continue to be able to remunerate shareholders well via dividends and growth in fundamentals. Source: GuruFocus Because it has these characteristics, VICI also has specific risks. In my opinion, the main one is the large exposure to certain tenants. Ceasars is one of the leading names in the casino market, and can even be considered one of VICI's strengths since this partnership brings considerable brand power. The problem is that in % of Annualized Cash Rent Caesars represents 39% of the total, followed by 35% for MGM Resorts. In addition to this over-concentration, Caesars is a healthy company overall, but its balance sheet is not the most solid. For example, the company has a debt to EBITDA of 7x, and a revenue that has decreased YoY. Although far from being considered insolvent, it's an important thing to keep an eye on, as it could have a major impact on VICI properties until it finds another tenant should something happen. The same goes for MGM Resorts International (NYSE:MGM), which although healthy overall, has a financial strength of 3/10, with a debt to EBITDA of 13x. In addition to this main risk, it is possible to mention industry regulation, which increases the level of future uncertainty, especially when considering potential expansions. Despite this, this factor can also be considered an entry barrier, as it also decreases competition and makes VICI's positioning even more unique. Some other industry factors should also be monitored, such as the trend towards online gaming, which can take a share of the tenants' growth, but which can also be seen as complementary, since physical experiences should not be left aside. A less specific risk is macroeconomic factors, since like any REIT, VICI is sensitive to interest rates both because of its leveraged balance sheet due to its business model and because treasury rates are an alternative to income investing. Even so, VICI has a very reasonable debt profile, with leverage of just over 5x and a very long debt amortization schedule. In view of the above factors, I see the REIT as a good alternative for an income portfolio. The company has unique properties, competitive advantages, and risks which, although they must be monitored, do not pose an immediate danger. This makes its cash flow and prospects for this indicator attractive. The historical CAGR of VICI's annualized dividend per share since 2018 is 7%, while that of other REITs operating with triple net leases has been much lower, at around 2%. While this growth rate may not be sustainable indefinitely, considering that the last few years have seen more aggressive acquisitions and expansions, it is already a good indication to illustrate that VICI has generated value in recent years. Source: VICI Investor Presentation This $1.7 per share is even better when analyzed together with the payout, which was 66%, i.e. a very healthy payout that leaves room for both increased distribution and debt management and possible acquisitions. It's worth mentioning that the dividend yield of 5.5% over the last 12 months is both higher than the average for the last 5 years, which was 5%, and the average for the REIT industry. Source: Koyfin In short, VICI is an alternative that allows you to get exposure to the gaming and experience market through well-positioned properties in the sector and a company with a track record of generating positive shareholder value, which ultimately translates into a reliable option for dividend investing. But it's not without risks, so it's necessary both to keep the risks of dependence on certain tenants in mind and to follow the development of the thesis closely. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
CZR Q1 Earnings Call: Digital Growth and Regional Recovery Offset Profit Shortfall
Hotel and casino entertainment company Caesars Entertainment (NASDAQ:CZR) met Wall Street's revenue expectations in Q1 CY2025, with sales up 1.9% year on year to $2.79 billion. Its non-GAAP loss of $0.54 per share was significantly below analysts' consensus estimates. Is now the time to buy CZR? Find out in our full research report (it's free). Revenue: $2.79 billion vs analyst estimates of $2.79 billion (1.9% year-on-year growth, in line) Adjusted EPS: -$0.54 vs analyst estimates of -$0.18 (significant miss) Adjusted EBITDA: $845 million vs analyst estimates of $874.8 million (30.2% margin, 3.4% miss) Operating Margin: 17.5%, in line with the same quarter last year Free Cash Flow was -$5 million compared to -$184 million in the same quarter last year Market Capitalization: $6.26 billion Caesars Entertainment's first quarter results were shaped by steady performance in its core Las Vegas and regional casino businesses, alongside continued momentum in its digital segment. Management attributed the stable revenue trends to strong group and convention bookings in Las Vegas, growth from recently completed capital projects in New Orleans and Danville, and disciplined cost controls. CEO Tom Reeg noted that while the company faced headwinds from challenging year-over-year comparisons, weather disruptions, and a one-day calendar difference, the business demonstrated resilience across its main markets. Looking ahead, leadership maintained a positive outlook on continued growth in digital gaming and ongoing stability in brick-and-mortar operations, while emphasizing caution around potential macroeconomic pressures and policy changes. Management stated that forward bookings in Las Vegas remain solid and that the company has not observed any material signs of consumer weakness. Reeg remarked, 'We still do not see any of the consumer softness that investors seem to be worried about,' but also acknowledged that the company is prepared to adjust operating levers if broader economic conditions deteriorate. Caesars Entertainment's management focused on the interplay between Las Vegas, regional, and digital performance, noting how each area contributed to the quarter's outcomes and will shape the company's trajectory this year. Las Vegas stability and group business: Las Vegas delivered flat year-over-year results despite a tough comparison with last year's Super Bowl, aided by strong convention and group bookings. Management said group room nights accounted for 20% of the quarter's mix, with expectations for a record year in group business. Regional segment improvement: The regional casino segment saw a notable sequential improvement, driven by the full-quarter contribution from the New Orleans and Danville properties. Both locations, recently completing their elevated capital expenditure cycles, are expected to provide steady cash flow moving forward. Digital segment acceleration: Digital net revenue rose 19%, fueled by robust iCasino growth (up 53%) and a higher mix of parlay bets in sports betting. Management highlighted new app features and product enhancements, with the Caesars Palace Online app leading growth and the Horseshoe app already contributing 7% of digital gaming revenue. Cost discipline and margin management: Operating expenses in Las Vegas fell 3% year-over-year, reflecting ongoing efforts to optimize labor, vendor contracts, and operational efficiency. The company also reported successful cost controls in the digital segment, resulting in an EBITDA flow-through rate above internal targets. Capital allocation and free cash flow priorities: With major capital projects completed, Caesars is transitioning into a 'free cash flow harvesting mode,' prioritizing debt reduction while remaining opportunistic about share repurchases if valuation conditions are favorable. Management expects digital expansion, ongoing cost control, and stable consumer demand to drive performance for the remainder of the year, while remaining alert to economic uncertainty and industry policy shifts. Digital growth momentum: The company expects continued double-digit growth in online gaming, especially in iCasino, driven by product enhancements, new game launches, and expansion of the shared wallet system across states. Regional and Las Vegas bookings: Forward bookings for Las Vegas and regional properties remain healthy, with management expecting group and convention business to offset any potential leisure softness. Recent investments in regional properties are also expected to support modest growth. Macroeconomic and policy risks: Management identified inflation, tariffs, and potential policy changes as headwinds, but stated that no consumer weakness or material impact from tariffs has appeared in current results. The company is prepared to activate cost levers or leverage its real estate portfolio if macro conditions worsen. Carlo Santarelli (Deutsche Bank): Asked about the outlook for group bookings and forward visibility in Las Vegas. Management said group pace is firm, with particular strength expected in the fourth quarter and no current need to use customer database levers to fill rooms. Brandt Montour (Barclays): Inquired about the quantifiable impact of weather and calendar shifts on regional results. Management estimated these factors negatively affected regional EBITDA by more than $10 million, with Las Vegas also impacted by the leap year. Steve Wieczynski (Stifel): Questioned whether lower-tier or unrated customers were showing spending declines. CEO Tom Reeg stated unrated play is softer than rated, but overall customer spending patterns remain stable as of late April. David Katz (Jefferies): Sought clarification on the split between iGaming and sports betting growth in digital and the company's outlook for both. Management expects both segments to generate significant EBITDA, with iGaming seen as particularly promising due to steadier growth and potential future legislative changes. Chad Beynon (Macquarie): Asked about the outlook for regional segment margins as new properties ramp and competition anniversaries. Management expects regional EBITDA and margins to improve as competitive impacts subside and new investments mature. In future quarters, the StockStory team will watch (1) whether digital growth—particularly in iCasino and new app features—remains at elevated levels, (2) the extent to which group and convention bookings in Las Vegas can offset any emerging softness in consumer leisure demand, and (3) whether regional property investments, especially in New Orleans and Danville, lead to sustained margin improvement. We will also monitor management's capital allocation between debt reduction and opportunistic share repurchases as free cash flow increases. Caesars Entertainment currently trades at a forward EV-to-EBITDA ratio of 1.6×. Should you load up, cash out, or stay put? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
