11 Best Las Vegas Stocks To Buy Now

2. Caesars Entertainment, Inc. (NASDAQ:CZR)

Number of Hedge Fund Holders: 54

Caesars Entertainment, Inc. (NASDAQ:CZR) is a casino entertainment company that has a diversified portfolio of resorts and online platforms. The company operates resorts under various brand names including Caesars, Horseshoe, Eldorado, and Harrah’s.

It is one of the most renowned resort operators on the Las Vegas Strip and is also one of our best Las Vegas Stocks to buy now. The stock was held by 54 hedge funds in Q2 2024, with total stakes worth $1.23 billion. HG Vora Capital Management is the top shareholder with a position worth $131.1 million.

The overall casino market on the Las Vegas strip has been slow since the pandemic, as a result, the financial results for Caesars Entertainment, Inc. (NASDAQ:CZR) were mostly linear to its previous year’s progress. One of the segments that was moving higher for the company during the second quarter was its Digital segment.

While the overall net revenue for the company was very slightly down by 0.1% year-over-year, the Digital segment saw a robust growth of 27.8% during the same time. The digital segment’s net revenues were recorded at $276 million for the quarter.

The same segment was the only contender to improve its adjusted EBITDA over the comparable period last year. Caesars Digital Adjusted EBITDA  improved from $11 million to $40 million for the most percent quarter. Tom Reeg the CEO of Caesars Entertainment, Inc. (NASDAQ:CZR) remains optimistic that returning operation trends in Las Vegas will benefit the digital segment further. Moreover, the expected opening of a permanent facility in Danville along with investment in the rebranded Caesars New Orleans property will drive strong results in the future.

Baron Real Estate Fund stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q2 2024 investor letter:

“In the most recent quarter, we chose to lower the Fund’s large exposure to travel-related real estate companies and exited the Fund’s position in Caesars Entertainment, Inc. (NASDAQ:CZR), the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers.

We have near-term reservations about a possible moderation in consumer demand for some of Caesars’ properties and believe the move higher in interest rates and a largely quiet transaction market also negatively impact certain highly leveraged companies such as Caesars. We are fans of CEO Tom Reeg and may revisit Caesars for purchase at a later date.”