Caesars Entertainment (CZR) Trading With Heavy Volume Before Market Open

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 or Stephanie Link.

Trade-Ideas LLC identified Caesars Entertainment ( CZR) as a pre-market mover with heavy 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 $16.0 million.
  • CZR traded 86,962 shares today in the pre-market hours as of 9:03 AM, representing 10.6% of its average daily volume.

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More details on CZR:

Caesars Entertainment Corporation owns, operates, or manages casino entertainment facilities. Currently there are no analysts that rate Caesars Entertainment a buy, 2 analysts rate it a sell, and 1 rates it a hold.

The average volume for Caesars Entertainment has been 901,400 shares per day over the past 30 days. Caesars Entertainment has a market cap of $3.1 billion and is part of the services sector and leisure industry. Shares are up 2.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Caesars Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income 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 274.0% when compared to the same quarter one year ago, falling from -$469.70 million to -$1,756.90 million.
  • 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CAESARS ENTERTAINMENT CORP reported poor results of -$22.05 versus -$11.05 in the prior year. This year, the market expects an improvement in earnings (-$4.70 versus -$22.05).
  • 49.44% is the gross profit margin for CAESARS ENTERTAINMENT CORP which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -84.53% is in-line with the industry average.
  • Compared to its closing price of one year ago, CZR's share price has jumped by 35.88%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in CZR do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • CZR's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

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