1-Star Stocks Poised to Plunge: Caesars?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Caesars Entertainment (Nasdaq: CZR  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Caesars and see what CAPS investors are saying about the stock right now.

Caesars facts

   
Headquarters (founded) Las Vegas (1937)
Market Cap $906.0 million
Industry Casinos and gaming
Trailing-12-Month Revenue $8.9 billion
Management Chairman/CEO Gary Loveman
President of Operations Thomas Jenkin
Return on Capital (average, past 3 years) 2.8%
Cash / Debt $985.1 million / $20.3 billion
Competitors Boyd Gaming
MGM Resorts International
Trump Entertainment Resorts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 77% of the 62 members who have rated Caesars believe the stock will underperform the S&P 500 going forward.

A few months ago, one of those Fools, Allstar13913, succinctly summed up the bear case for our community:

Caesars currently has high debt levels and no clear way to pay off its debt. As a regional casino operator, it has no footprint in Asia and an inability to attract big customers. Management seems to be incompetent and is looking to expand operations in [Massachusetts] rather than pay down debt that is out-stripping revenues. This was a horrible IPO that was foisted on the investing public.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

11/28/2014 12:59 PM
CZR $16.96 Down -0.17 -0.99%
Caesars Entertainm… CAPS Rating: *

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