Shareholders rave about how Caesars Entertainment (NASDAQ:CZR) stock price rose 738%


Buying stock in the best companies can create significant wealth for you and your family. Although the best companies are hard to find, they can generate massive returns over long periods of time. Think of the savvy investors who held Caesars Entertainment, Inc. (NASDAQ:CZR) shares over the past five years, when they have gained 738%. And that’s just one example of the epic gains made by some long-term investors. It’s also good to see the stock price up 31% in the last quarter. But this movement may have been helped by a reasonably buoyant market (+15% in 90 days).

Anyone who held out for this rewarding ride would probably be keen to talk about it.

Check out our latest analysis for Caesars Entertainment

Because Caesars Entertainment posted a loss in the past twelve months, we think the market is likely more focused on revenue and revenue growth, at least for now. Generally speaking, companies without profits should increase their revenue every year, and at a good pace. Indeed, it is difficult to be sure that a business will be sustainable if revenue growth is negligible and it never makes a profit.

Over the past 5 years, Caesars Entertainment has seen revenue grow 27% per year. Even compared to other revenue-oriented companies, this is a good result. Arguably, this is well and truly reflected in the strong stock price gain of 53% (per year) over the same period. It’s never too late to start tracking top-notch action like Caesars Entertainment, as some long-term winners continue to win for decades. So we recommend taking a closer look at this one, but keep in mind that the market looks bullish.

You can see how earnings and income have changed over time below (find out the exact values ​​by clicking on the image).

earnings-and-revenue-growth

Caesars Entertainment is well known to investors and many smart analysts have tried to predict future profit levels. You can see what analysts are predicting for Caesars Entertainment in this interactive graph of future profit estimates.

A different perspective

Caesars Entertainment shareholders earned a total return of 16% during the year. But this yield is lower than the market. On the positive side, longer-term returns (about 53% per year, over half a decade) look better. It is entirely possible that the company will continue to operate with prowess, even if the stock price gains slow. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. For example, we found 3 warning signs for Caesars Entertainment (1 is significant!) which you should be aware of before investing here.

Sure Caesars Entertainment may not be the best stock to buy. So you might want to see this free collection of growth values.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

This Simply Wall St article is general in nature. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

Previous Yes, Mel Gibson is "problematic"
Next Leonard Fournette's absence creates an opportunity in the Bucs' running game