Caesars Stock Price Spectacular Rally Could Continue

Summary:

In this Caesers stock price forecast, we explain why the shares have bounced back and are hovering at the highest level on record

The Caesars stock is hovering near its all-time high as interest in the gaming and gambling industry rebounds. The shares are trading at $109.55, which is 1,715% above its lowest level in 2020. They have risen by more than 40% this year, bringing its market capitalization to more than $22 billion.

Caesars recent earnings

Caesars stock price tumbled in the first quarter of 2020 as the pandemic started. The pandemic pushed the company to close most of its physical operations, which were deemed as non-essential.

The shares then rebounded as more people with stimulus checks started to embrace online gaming and fantasy sports. The stock also did well as investors started to price in a swift recovery as companies like Pfizer and Moderna accelerated their vaccine development.

Recent earnings showed that the company’s growth was returning even as the pandemic continued. Its total occupancy as 63% during the weekend and around 52% mid-week. It also said that its weekends in Las Vegas were sold-out, providing further evidence of the surging demand.

In total, the company made $1.7 billion of revenue in the quarter, a 252% year-on-year increase. It recorded a net loss of $423 million and a same-store adjusted EBITDA of $510 million. The revenue and EPS figures missed the median estimates by investors.

Growth of online gaming

The Caesars stock price has jumped, in part, because of the ongoing growth of online gaming. A few months ago, the company completed its acquisition of William Hill, in a $4 billion. William Hill is one of the best-known online sports betting brands in the UK with more than 3.2 million customers. It also has 1,414 licensed betting offices in the country.

The company has also acquired licenses to offer these services in Nevada, Pennsylvania, New Jersey, and Michigan. The company has also grown its brand in the United States by partnering with the NFL as the first official casino sponsor and with ESPN.

Caesars has also benefited from its international presence. The company, which is one of the best casinos in the UK, has benefited as some of its locations start to reopen.

Caesars stock price analysis

The daily chart shows that the CZR stock price has been in a strong upward trend in the past few months. Last week, the shares moved above $106.48, which was the highest level on March 15. Its upward trend is being supported by the 25-day and 50-day moving averages. It is also approaching the upper side of the ascending channel.

Therefore, the bullish trend will likely continue as bulls target the upper side of the channel at $115. On the flip side, a drop below $105 will send a signal that there are still more sellers in the market.