Caesars Entertainment: 1-Star Stocks with Dangerous Debt Loads
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 and see what CAPS investors are saying about the stock right now.
Caesars facts
Headquarters (founded) | Las Vegas, Nevada (1937) |
Market Cap | $644.7 million |
Industry | Casinos and gaming |
Trailing-12-Month Revenue | $8.9 billion |
Management | Chairman/CEO Gary Loveman |
Return on Equity (average, past 3 years) | 2.7% |
Cash / Debt | $1.2 billion / $20.8 billion |
Competitors | Boyd Gaming (NYS: BYD) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 79% of the 63 members who have rated Caesars believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star 80brown, succinctly summed up the Caesars bear case for our community:
You can only push your debt off for so many years. The move to expand internationally but only on the hospitality side proved fatal. Caesars has its own "fiscal cliff" approaching, which will likely hit by end if first quarter next year. The only drawback to making an underperform call is the likely run-up from a short squeeze that might hit early January when panicked brokers force all the [shorts] to cover prematurely.
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The article Caesars Entertainment: 1-Star Stocks with Dangerous Debt Loads originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.
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