This week’s 7.3% return brings Caesars Entertainment (NASDAQ:CZR) shareholders a 30% one-year gain

Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by choosing to hold shares in companies that outperform the market. Caesars Entertainment (NASDAQ: CZR) shares are up 30% over the past year, significantly outperforming the market’s return of around 14% (excluding dividends). By our standards, this is a solid performance! That being said, the long-term returns haven’t been that impressive, with the stock only up 21% over three years.

The past week has proven to be profitable for Caesars Entertainment investors, so let’s see if fundamentals are driving the company’s one-year performance.

Check out our latest analysis for Caesars Entertainment

SWOT Analysis of Caesars Entertainment

Given that Caesars Entertainment has not been profitable in the past twelve months, we will focus on revenue growth to get a quick look at how its business is doing. Shareholders of unprofitable companies typically expect strong revenue growth. That’s because rapid revenue growth can easily be extrapolated into forecasted profits, often on a sizable scale.

Last year, Caesars Entertainment’s revenue rose 13%. That’s not a very high growth rate considering it’s not profitable. Shares are up 30% over the same period as revenue has grown. It’s not a dramatic result, but it’s solid — as is the level of revenue growth. Given that the market doesn’t seem too excited about the stock, poring over the financials could be rewarding if you can spot signs of stronger growth ahead.

Below you can see how earnings and earnings have changed over time (click on the image to discover the exact values).

It’s good to see some significant insider buying in the past three months. This is positive. On the other hand, we believe that revenue and earnings trends are more meaningful metrics for measuring the business.You can read what analysts are predicting for Caesars Entertainment in this article interactive Future Profit Forecast Chart.

Different perspectives

It’s great to see Caesars Entertainment rewarding shareholders with a 30% total shareholder return over the past 12 months. This increase is higher than the 4% annual total shareholder return over five years. As such, the sentiment for the company seems to be positive lately. Given that stock momentum remains strong, it might be worth taking a closer look at the stock so you don’t miss out on an opportunity. I find share price very interesting as a proxy for business performance over the long run. But in order to really gain insight, we also need to consider other information. For example, consider risk.Every company has them, we found 1 Warning Sign for Caesars Entertainment You should know.

If you like buying stocks with management, then you might like this free List of companies. (Hint: insiders have been buying them).

Note that the market returns quoted in this article reflect the market-weighted average return of stocks currently traded on U.S. exchanges.

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This Simply Wall St article is general in nature. We use an unbiased approach only to provide reviews based on historical data and analyst forecasts, and our articles are not intended to provide financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St does not hold a position in any of the aforementioned stocks.