Weak On High Volume: Caesars Entertainment (CZR)
Trade-Ideas LLC identified
(
) as a weak 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 $7.4 million.
- CZR has traded 176,229 shares today.
- CZR is trading at 2.11 times the normal volume for the stock at this time of day.
- CZR is trading at a new low 5.07% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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, through its subsidiaries, provides casino-entertainment and hospitality services in the United States and internationally. Currently there are no analysts that rate Caesars Entertainment a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Caesars Entertainment has been 710,900 shares per day over the past 30 days. Caesars Entertainment has a market cap of $1.2 billion and is part of the services sector and leisure industry. The stock has a beta of -0.07 and a short float of 21.3% with 11.79 days to cover. Shares are down 2.6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Caesars Entertainment as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 104.5% when compared to the same quarter one year ago, falling from $6,772.00 million to -$308.00 million.
- The debt-to-equity ratio is very high at 10.28 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CZR maintains a poor quick ratio of 0.78, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, CAESARS ENTERTAINMENT CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- CAESARS ENTERTAINMENT CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CAESARS ENTERTAINMENT CORP turned its bottom line around by earning $40.24 versus -$18.18 in the prior year. For the next year, the market is expecting a contraction of 100.6% in earnings (-$0.26 versus $40.24).
- CZR, with its decline in revenue, underperformed when compared the industry average of 11.1%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Caesars Entertainment Ratings Report.
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