Caesars Entertainment (CZR) is back in the Las Vegas spotlight after announcing a planned Caesars Sportsbook at Rampart Casino in Summerlin, pending approval. This move represents a strategic push deeper into local sports betting demand.
See our latest analysis for Caesars Entertainment.
Despite strategic moves like the Rampart sportsbook and the new Caesars Rewards Shop feature, Caesars Entertainment’s recent trading tells a mixed story, with a strong 1 month share price return of 20.83 percent but a much weaker 1 year total shareholder return of negative 33.85 percent, indicating that short term momentum is building from a still bruised long term base.
If this kind of turnaround story has your attention, it could be a good moment to see what else is setting up for a potential rerate among fast growing stocks with high insider ownership.
With shares still trading at a steep discount to analyst targets despite improving digital momentum and loyalty monetization, investors now face a key question: Is Caesars undervalued ahead of a rebound, or is the market already discounting its future growth?
Most Popular Narrative Narrative: 28.4% Undervalued
With Caesars Entertainment last closing at $23.90 against a narrative fair value of $33.37, followers of the story see meaningful upside built into future cash flows.
Analysts expect earnings to reach $540.9 million (and earnings per share of $2.61) by about September 2028, up from $-195.0 million today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting $606 million in earnings, and the most bearish expecting $66.6 million.
Curious how modest top line growth, rising margins, and a richer future earnings multiple can still justify a big value gap to today’s price? The narrative lays out the exact cash flow runway and profit inflection that back this upside view, plus how long shareholders might wait for those numbers to arrive.
Result: Fair Value of $33.37 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, elevated debt and persistent leisure softness in Las Vegas could still derail the expected digital-led margin expansion and delay any meaningful rerating.
Find out about the key risks to this Caesars Entertainment narrative.
Build Your Own Caesars Entertainment Narrative
If you see the story differently, or want to dig into the numbers yourself, you can build a personalized narrative in just minutes using Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Caesars Entertainment.
Ready for more high conviction ideas?
Consider looking beyond a single potential turnaround and quickly scanning fresh opportunities across themes, sectors, and strategies on the Simply Wall St screener.
- Capture mispriced opportunities early by reviewing these 915 undervalued stocks based on cash flows that strong cash flow analysis suggests the market is still overlooking.
- Seek exposure to the next wave of intelligent automation by targeting these 25 AI penny stocks positioned at the heart of rapid software and infrastructure adoption.
- Explore potential income streams today by focusing on these 13 dividend stocks with yields > 3% that balance yield with solid underlying fundamentals.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com