Caesars Entertainment Stock Analysis | Is CZR a Buy or Sell?
How did a gambling name like Caesars Entertainment make it to our list of best performing and biggest stock gainers?
Despite fears of a new global recession, consumer debt challenges in the U.S, and the fiscal crises drama during 2013, Caesars Entertainment saw its shares climb more than 190% in 2013.
Is Caesars Entertainment Stock (CZR) a Buy?
The strengthening of the US economy makes Caesars Entertainment stock (CZR) a potential buy or a candidate for your 2014 Watch List of potential investment names.
Las Vegas is seeing a moderate resurgence, as hotel room bookings and gaming make a comeback.
The passage of several Federal and State laws that legalize online gambling also bides well for the company’s stock in the coming years.
However, all's not well with the gambling industry and with CZR specifically.
Caution: Is Caesars Entertainment Stock (CZR) a Sell?
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 CZR.
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.