Not Little Caesars: Casino Stock Best in S&P 500 This Week
It was a undecomposed calendar week for stocks as the S&P 500 gained 3.45%, but Caesars Entertainment (NASDAQ: CZR)far outpaced the broader marketplace inward the cobbler's last calendar week of March, surging 15.12%.
That lead was aided past a 4.14% rally today, though it occurred on below-average volume. Still, the Harrah’s operator ranked as the best-performing member of the S&P 500 inward the last calendar week of the firstly quarter, capping the first-class honours degree trine months of 2023 with a quarterly earn of 17.78%. Caesars, which is unity of quatern gambling casino operators residing inwards the benchmark domesticated equity gauge, was the only if fellow member of that quartet among the index’s top-performing names this week.
It’s been nigh deuce years since Caesars joined the S&P 500. The stock is upwards more than 17% year-to-date and with its close today at $48.81, the stockpile offers possible upside 44.38% relative to the Wall Street consensus terms butt of $70.47.
Caesars Big Week Arrived on Little News
What makes Caesars’ swelled exchange this calendar week all the to a greater extent interesting and, perhaps, encouraging, is the fact that it was accumulated on the rearward of no more company-specific news.
The Nevada-based cassino operator made no more material announcements this week. It didn’t say it’s selling a prop to set up hard cash nor did it unveil debt-reducing plans — ii marquee issues in the eyes of analysts. Nor did Caesars ply a preliminary sight of its first-quarter results. It appears analyst commentary was ace accelerator before the stock’s bullish shipway this week.
Additionally, CZR and MGM noted on their 4Q calls that Strip occ has been trending supra 90% in 2023, with mathematical group stage business now surpassing 2019 levels for the world-class time, which, inward compounding with a strong leisure events calendar sets operators upwards for put down hotel revenue inwards the month,” wrote Macquarie psychoanalyst Republic of Chad Beynon inward a study to clients.
MGM Resorts International (NYSE: MGM) and Caesars are the pinch ii Strip operators. In to a greater extent upright intelligence for Caesars, Beynon noted first-quarter Las Vegas visitation was simply 3% infra pre-coronavirus levels, compared with the six-month mean(a) of -5%. MGM and Caesars combine for about 60% of Strip porcine gaming revenue (GGR).
Another Feather inward Caesars’ Cap
In what could be a signal of resiliency in Caesars shares, the stock’s stellar weekly execution arrived inward the human face of some challenging macroeconomic news. In its March Consumer Confidence survey, the Conference Board noted betting and lotteries are the categories in which consumers are provision the biggest disbursement cuts over the next hexad months.
Another lot of data from a research steady point leisure time travelers are actively paring outlay on amenities such as dining, dark clubs and pools — all of which are relevant to Las Vegas casino operators, including Caesars.
Near-term catalysts for Caesars stock include the possibility of a better-than-expected first-quarter earnings report and the potentiality for a shorter timeline to profitability inward the iGaming/online sporstsbook unit.
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