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Are Investors Undervaluing Caesars Entertainment (CZR) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Caesars Entertainment (CZR) is a stock many investors are watching right now. CZR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

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Investors should also recognize that CZR has a P/B ratio of 2.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.62. Within the past 52 weeks, CZR's P/B has been as high as 4.50 and as low as 1.78, with a median of 2.71.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CZR has a P/S ratio of 0.91. This compares to its industry's average P/S of 0.96.

These are only a few of the key metrics included in Caesars Entertainment's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CZR looks like an impressive value stock at the moment.

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Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report

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Zacks Investment Research