Why Caesars Is Poised to Keep Pulling Back

Updated

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 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 (1937)

Market Cap

$1.4 billion

Industry

Casinos and gaming

Trailing-12-Month Revenue

$8.9 billion

Management

Chairman/CEO Gary Loveman

CFO Donald Colvin

Return on Capital (average, past 3 years)

2.7%

Cash/Debt

$1.2 billion / $21.1 billion

Competitors

Boyd Gaming

Las Vegas Sands

MGM Resorts International


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

On CAPS, 78% of the 102 members who have rated Caesars believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, Allstar13913, tapped the stock's recent surge as short-lived:

It's on its way back down after a bubble pop/ short run on the stock from the New Jersey gaming law .

Caesar's currently has high debt levels and no clear way to pay off its debt. As a regional casino operator, it has no footprint in Asia and an inability to attract big customers. ...

This was a horrible IPO that was foisted on the investing public.

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The article Why Caesars Is Poised to Keep Pulling Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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