Are Investors Undervaluing Caesars Entertainment (CZR) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Caesars Entertainment (CZR). CZR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that CZR has a P/B ratio of 2.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.45. Over the past year, CZR's P/B has been as high as 4.50 and as low as 1.78, with a median of 2.85.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CZR has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.21.
These are just a handful of the figures considered in Caesars Entertainment's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CZR is an impressive value stock right now.
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Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
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