Introducing Caesars Entertainment (NASDAQ:CZR), The Stock That Soared 738% In The Last Five Years

Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. To wit, the Caesars Entertainment, Inc. (NASDAQ:CZR) share price has soared 738% over five years. This just goes to show the value creation that some businesses can achieve. On top of that, the share price is up 31% in about a quarter. But this could be related to the strong market, which is up 15% in the last three months.

It really delights us to see such great share price performance for investors.

View our latest analysis for Caesars Entertainment

Because Caesars Entertainment made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 5 years Caesars Entertainment saw its revenue grow at 27% per year. That's well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 53% per year in that time. It's never too late to start following a top notch stock like Caesars Entertainment, since some long term winners go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Caesars Entertainment is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Caesars Entertainment stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

Caesars Entertainment shareholders are up 16% for the year. But that return falls short of the market. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 53% over five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. It's always interesting to track share price performance over the longer term. But to understand Caesars Entertainment better, we need to consider many other factors. Take risks, for example - Caesars Entertainment has 3 warning signs (and 1 which is significant) we think you should know about.

Of course Caesars Entertainment may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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