Caesars Entertainment Corp (CZR) Stock Review

Readers might ask how a gambling name like CZR made it to our list of top 2014 stocks to own. Despite fears of a global recession, consumer debt challenges in the U.S., and the 2013 fiscal crisis drama, CZR saw its shares climb more than 159% over the 52-week review period. Hence its inclusion in this list of 2013 stars!


Caesars Entertainment Corp. works through a wholly-owned subsidiary, Caesars Entertainment Operating Company, Inc. It is a casino-entertainment provider and a diverse U.S. casino-entertainment company.

If you are a believer in the continued recovery of the U.S. economy, then CZR may be a candidate for your 2014 Watch List of potential investment names. Las Vegas is seeing a moderate resurgence, and as hotel room bookings and gaming console use makes a slight comeback, CZR is well positioned to improve its revenue and free cash flow from these trends. The passage of several Federal and State laws that legalize online gambling also bodes well for the company in the coming years.


However, all's not well with the gambling industry and with CZR specifically. A heavily leveraged balance sheet – much more so than many of its competitors – means that even the slightest headwinds to the modestly recovering U.S. economy might spell bad news for the company. The huge debt burden has also prevented the company from making much needed capital investment in its gambling establishments. This could lead to its properties becoming less attractive to its clients.