What Makes Caesar’s (CZR) an Investment Bet?

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Buckley Capital Advisors, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. Since the third quarter was not great, 2024 has not been a great year. The fund has not performed as well in relation to benchmarks, and this is the first time in five years that the firm has this type of underperformance relative to the benchmarks. The fund returned 4.77% in the third quarter compared to a 10.11% return for the iShares Russell 2000 Value and a 9.25% return for the Shares Russell 2000 indexes. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Buckley Capital highlighted stocks like Caesars Entertainment, Inc. (NASDAQ:CZR), in the third quarter 2024 investor letter. Caesars Entertainment, Inc. (NASDAQ:CZR) is a gaming and hospitality company. The one-month return of Caesars Entertainment, Inc. (NASDAQ:CZR) was -16.74%, and its shares lost 29.90% of their value over the last 52 weeks. On December 20, 2024, Caesars Entertainment, Inc. (NASDAQ:CZR) stock closed at $32.82 per share with a market capitalization of $6.974 billion.

Buckley Capital stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q3 2024 investor letter:

"We recently added Caesars Entertainment, Inc. (NASDAQ:CZR) to our portfolio at an average price of ~$37 per share. We believe that in owning CZR, we are getting world-class assets in both its owned casino real estate and digital businesses - which will comprise almost 70% of 2025 EBITDA - while paying a rock-bottom price. With three important catalysts about to materialize in the next 12 months – significant deleveraging, the digital business inflecting to substantial profitability, and massive FCF generation – we believe investor enthusiasm will turn more positive and the shares will re-rate higher. Caesars currently has an $8.6 billion market cap. We believe it could trade 50% to 100% higher within the next 12-24 months.

A general view of a luxury resort casino, surrounded by a beautiful landscape and illuminated at night.