Caesars Entertainment (CZR) is a Zacks Rank #5 (Strong Sell) that operates a wide range of entertainment and hospitality businesses, primarily in the casino and resort sectors.The company owns and operates casinos, hotels, and resorts, offering various gaming experiences, entertainment options, dining, and nightlife. Caesars is known for its flagship brands like Caesars Palace in Las Vegas, as well as other properties across the U.S. and internationally.While the brand is one of the more popular names in Vegas, the stock is trading near 2024 lows. Investors should stay away after A streak of earnings misses and falling estimates. About the CompanyCaesars Entertainment, based in Reno, Nevada, is a diversified gaming and hospitality giant with roots dating back to 1973 when it was founded by the Carano family. The company primarily generates revenue through its expansive gaming operations, which include mobile and online gaming as well as sports betting.Operating under renowned brands such as Caesars, Harrah’s, Horseshoe, and Eldorado, the company has a significant presence in the United States and five other countries.CZR is valued at $7 billion and has a Forward PE of 26. The stock holds Zacks Style Scores of “B” in Value, but “F” in Growth. Q3 EarningsOctober brought the fourth straight EPS miss, with the company posting a surprise miss of 120%. Caesars reported Q3 quarterly sales of $2.90 billion, slightly below the analyst consensus estimate of $2.92 billion, missing by 0.82%. The sales represent a 3.14% decline compared to the $2.99 billion reported in the same period last year.Caesars wasn’t the only name that struggled as several major Las Vegas casino operators reported financial results that fell short of expectations, highlighting operational weaknesses.MGM Resorts saw a significant revenue decline in its Las Vegas operations, with notable drops in table games earnings. Wynn Resorts experienced reduced casino revenue despite growth in entertainment and retail sales, while Las Vegas Sands faced a decrease in total quarterly revenue due to ongoing renovations and lower-than-expected property income.These challenges reflect issues such as decreased casino patronage, operational disruptions, and changing consumer behavior, impacting the financial performance of these operators. Earnings EstimatesWith earnings and industry weakness, analysts are lowering their estimates for Caesars.Over the last 90 days, numbers have been taken down 74% for the current quarter, going from $0.27 to $0.05.For the current year, we see the losses increasing, with earnings estimates going from -$0.68 to -$1.28. Next year also sees a 28% drop, going from $1.70 to $1.23. Technical Take2024 was a long year for investors in CZR. The stock dropped about 30% and has started the year around the 2024 lows.While the fundamental story needs work, the technical side looks bad as well. The stock is trading below all its moving averages; the first positive sign for the bulls would be a move over the 21-day MA, currently at $35.From there, the resistance area is the 200-day at $38. However, the stock has just seen a “Death Cross,” which is when the 50-day falls below the 200-day MA. This is typically a negative signal. In SummaryCaesars Entertainment faces significant challenges that make it an unattractive investment at this time. Despite its strong brand presence and diverse operations in the gaming and hospitality sectors, the company is grappling with a streak of earnings misses, declining revenues, and reduced earnings estimates.For those interested in the leisure space, a better option might be Norwegian Cruise Line (NCLH) . The stock is a Zacks Rank #1 (Strong Buy) that is coming off a 17% earnings beat. More By This Author:Bear of the Day: Thor IndustriesBull Of The Day: Park Hotels & Resorts Bull Of The Day: LaZBoy
