Caesars Entertainment (CZR) Moves 11.8% Higher: Will This Strength Last?

Caesars Entertainment (CZR) shares ended the last trading session 11.8% higher at $29.07. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 25.4% gain over the past four weeks.

Caesars Entertainment, stock rally is likely driven by optimism around the company’s expanding digital gaming ecosystem and continued investments across its resort portfolio. Strength in customer engagement, supported by its integrated loyalty platform and strong brand portfolio, is helping deepen visitation across properties. The company’s focus on enhancing guest experiences through property upgrades and entertainment offerings is further reinforcing its destination appeal. Together, these strategic initiatives are boosting investor confidence in Caesars’ long-term growth trajectory.

This casino and resort operator is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +64.8%. Revenues are expected to be $2.86 billion, up 2.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Caesars Entertainment, the consensus EPS estimate for the quarter has been revised 60.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CZR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Caesars Entertainment is a member of the Zacks Leisure and Recreation Services industry. One other stock in the same industry, Travel + Leisure Co. (TNL), finished the last trading session 0.5% higher at $71.5. TNL has returned -3.8% over the past month.

Travel Leisure Co.'s consensus EPS estimate for the upcoming report has changed +2.3% over the past month to $1.3. Compared to the company's year-ago EPS, this represents a change of +17.1%. Travel Leisure Co. currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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