Caesars Entertainment Co., Ltd. CZR is benefiting from increased occupancy rates, expanded sports betting and strategic partnerships. The company’s stock has risen 26.9% in the past six months compared to his 4.8% rise in the industry.
In 2023, the Zacks Rank #2 (Buy) company could see 5.6% and 131.5% year-over-year growth in sales and earnings, respectively. The company also has a VGM score of A.
Let’s dig deeper.
growth driver
The company continues to benefit from strong occupancy. During the third quarter of 2022, Las Vegas occupancy reached his 94%. The upside was primarily driven by retained demand and strong booking trends.
Going forward, the company is optimistic about booking trends, as more groups and conference rooms are booked. The company expects the upward trend in bookings to continue in 2022 and beyond.
Caesars Entertainment has revealed that it has begun to see a revival of conventions in Las Vegas, although the rate of decline remains higher than usual. The company expects the return of group and convention business and entertainment offerings to increase demand in the Las Vegas market.
The company also focuses on sports betting to drive growth. To this end, the company has formed a new Caesars Digital segment consisting of sports betting, iGaming and poker.
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CZR has integrated digital services with Caesars Rewards in online and brick-and-mortar casinos. As of September 30, the company operated sports betting in 27 jurisdictions, 19 of which were mobile. It also said that iGaming products are available in five jurisdictions.
Additionally, Caesars Entertainment continues to focus on partnerships to drive growth. The company has expanded partnerships with the Arizona Diamondbacks and Caesars Superdome. William Hill, part of Caesars Entertainment, will open its first sportsbook in 2020 inside the US sports complex at the world-famous Capital One Arena.
Meanwhile, CZR is working to expand its relationships with leagues and professional sports teams. To this end, we have partnerships with the NBA, NHL and MLB. We are also the official casino sponsor and sports betting partner of the NFL.
Other key picks
Other top-ranked stocks in the Zacks Consumer Discretionary sector are: Monarch Casino & Resort, Inc. MCRI, Hyatt Hotels Corporation hand Wyndham Hotels & Resorts, Inc. WH.
Monarch Casino currently boasts Zacks Rank #1 (strong buy). MCRI expects fourth quarter earnings to average 9.1%. The stock has gained 22% over the past year.you can see See the full list of Zacks #1 Rank stocks for today here.
MCRI’s Zacks Consensus forecasts for 2022 revenue and earnings per share (EPS) show growth of 21.1% and 29.2%, respectively, from the levels reported in the same period last year.
Hyatt is currently #2 on Zachs Rank. H underperformed Q4 guidance by an average of 652.3%. The stock has gained 22.6% over the past year.
H’s Zachs consensus forecasts for revenue and EPS for the current fiscal year show jumps of 91.9% and 121%, respectively, from the levels reported in the same period last year.
Wyndham Hotels & Resorts is currently #2 on the Zachs Rankings. WH’s long-term revenue growth is 7.9%. Shares of Wyndham Hotels & Resorts are up 6.7% over the past three months.
WH’s Zacks consensus forecast for 2023 EPS shows a 3% increase from the level of the same period last year.
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Hyatt Hotels Corporation (H): Free Stock Analysis Report
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Caesars Entertainment, Inc. (CZR) : Free Inventory Analysis Report
Wyndham Hotels & Resorts (WH) : Free Inventory Analysis Report
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