1-Star Stocks Poised to Plunge: Caesars?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Caesars Entertainment (NAS: CZR) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Caesars' business and see what CAPS investors are saying about the stock right now.


Headquarters (Founded)Las Vegas (1937)
Market Cap$1.8 billion
IndustryCasinos and gaming
Trailing-12-Month Revenue$8.8 billion
ManagementChairman/CEO Gary Loveman
CFO Jonathan Halkyard
Return on Equity (Average, Past 3 Years)(66.4%)
Cash/Debt$1.2 billion / $20.0 billion
CompetitorsLas Vegas Sands
MGM Resorts International
Wynn Resorts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 45 members who have rated Caesars believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star MystixX, kindly warned our community about betting on Caesars:

Common people have less cash to travel to and gamble. Even if they had the money why would they go to a casino when they can just gamble in the biggest casino of them all directly from home-the stock market. The house will always win either way.

Also, if you really want to bet on casinos, then at least choose [Wynn] as most of their revenues come from abroad and they have an excellent balance sheet. [Caesars] is heavily levered and heavily US-based.

What do you think about Caesars, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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