Caesars Entertainment (CZR) Is Strong On High Volume Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Caesars Entertainment as such a stock due to the following factors:
- CZR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.2 million.
- CZR has traded 87,399 shares today.
- CZR is trading at 3.95 times the normal volume for the stock at this time of day.
- CZR is trading at a new high 3.28% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on CZR:
Caesars Entertainment Corporation owns, operates, or manages casino entertainment facilities. Its casino entertainment facilities include land-based casinos, riverboat or dockside casinos, and managed casinos, as well as casinos combined with a thoroughbred racetrack and a harness racetrack. Currently there are no analysts that rate Caesars Entertainment a buy, 2 analysts rate it a sell, and none rate it a hold.
The average volume for Caesars Entertainment has been 879,100 shares per day over the past 30 days. Caesars Entertainment has a market cap of $1.3 billion and is part of the services sector and leisure industry. The stock has a beta of 1.75 and a short float of 28.9% with 18.98 days to cover. Shares are down 39.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Caesars Entertainment as a
. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- CZR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 59.59%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- 48.76% is the gross profit margin for CAESARS ENTERTAINMENT CORP which we consider to be strong. Regardless of CZR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CZR's net profit margin of -47.44% significantly underperformed when compared to the industry average.
- CAESARS ENTERTAINMENT CORP has improved earnings per share by 46.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CAESARS ENTERTAINMENT CORP continued to lose money by earning -$18.00 versus -$21.43 in the prior year. This year, the market expects an improvement in earnings (-$7.30 versus -$18.00).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 42.5% when compared to the same quarter one year prior, rising from -$1,756.90 million to -$1,011.00 million.
- The revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues slightly increased by 2.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- You can view the full Caesars Entertainment Ratings Report.
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