11 Most Promising Long-Term Stocks According to Analysts

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4. Caesars Entertainment Inc. (NASDAQ:CZR)

10-Year Revenue CAGR: 41.01%

Number of Hedge Fund Holders: 79

Average Upside Potential as of April 21: 82.28%

Caesars Entertainment Inc. (NASDAQ:CZR) is a gaming and hospitality company. It also operates and conducts retail and online sports wagering, iGaming, sports betting from retail & online sportsbooks, and other games. In addition, it operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues. It also provides staffing and management services.

In 2024, the company’s Digital segment made a record revenue of $1.2 billion, which was up 20% year-over-year. In Q4 alone, Caesars Digital made $303 million in net revenue. This was fueled by the company’s iGaming sector, which grew by 65% in Q4. Unfavorable sports betting outcomes in October and December impacted these figures, without which the Digital revenue would have been around $370 million.

On February 19, Jefferies analyst David Katz assigned a Buy rating to the stock. Katz is optimistic that the company will rebound by 2025, despite short-term problems in the online business segment and regional gaming portfolio. While the regional portfolio may profit from a more competitive environment and fresh initiatives in specific areas, Caesars Digital is anticipated to grow due to improved iGaming performance and reduced promotional expenses.

JDP Capital Management stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q4 2024 investor letter:

“Caesars Entertainment, Inc. (NASDAQ:CZR) was down 30% in 2024. The position has been a loser so far, dropped about 17% below cost, equivalent to the valuation just 3 months in to COVID when Vegas was all but shut down. I have spoken about CZR at length in past letters so I will spare you from re-reading the pitch.

In 2024 CZR’s post-COVID growth rate started to slow and by 3Q 2024 revenue and EBITDA were essentially flat with YoY. Fears about a consumer spending hangover, combined with rising floating rate interest rates, led to the stock being put the penalty box most of the year.

Looking ahead at 2025 Caesars expects to generate materially more free cash flow as massive multi year capex projects wrapped up in 2024, and more states legalize online gaming. Caesars is also a beneficiary of the transition to online gaming which will drive higher returns on capital and free cash flow in industry with otherwise average returns. …” (Click here to read the full text)

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