We recently released a list of the
10 Top Stocks with High Short Interest to Purchase Currently
In this piece, we will examine how Caesars Entertainment Inc. (NASDAQ:CZR) measures up against other highly shorted stocks worth considering for purchase at present.
Aditya Bhave, BofA Securities head of US Economics, joined ‘Power Lunch’ on CNBC on April 17 to talk about whether tariffs are ultimately inflationary, disinflationary, or deflationary. Aditya Bhave responded that the impact depends on the magnitude of the uncertainty shock. He explained that tariffs are generally stagflationary, which means that they contribute to both inflation and economic stagnation. However, he also emphasized that it’s not just the content of the trade policy announcements that matters, but also the disruptive way in which these policies have been communicated, which has increased uncertainty for businesses. He noted that there is a scenario where the uncertainty caused by these policies could outweigh their stagflationary effects, making tariffs disinflationary instead. Bhave also referenced Fed Chair Jerome Powell’s recent hawkish remarks and drew a parallel to Powell’s stance during the 2021–2022 rate hiking cycle.
He emphasized Powell’s statement that persistent full employment cannot be achieved without ensuring price stability, an argument Powell has previously made as a rationale for implementing significant interest rate increases even amid a technical recession. According to Bhave, the Federal Reserve will probably keep prioritizing price stability and stick with its present strategy in the short run. During the height of the COVID-19 pandemic, the Fed under Powell reacted robustly to trade-related supply chain issues by injecting substantial stimulus into the economy. However, Bhave contends that these measures were taken post-disruption rather than concurrently. Although he acknowledges some delay in their actions, they did manage to hike rates drastically—by 425 basis points within one year. Yet, he anticipates that the Fed won’t adopt such vigorous tactics again soon; instead, he sees compelling reasons why maintaining stable interest rates makes sense at present.
Our Methodology
Initially, we filtered various stock screeners to identify firms having a short interest ranging from 10% to 25%. Next, out of those, we picked the top 10 stocks that faced the highest short selling activity by April 16. These also had to be favored positions for prominent hedge funds and receive positive recommendations from financial experts. The list ranks these equities based on how many different elite hedge funds held stakes in them as of Q4 2024. This information comes from Insider Monkey’s records, an extensive resource monitoring more than 1000 leading investment gurus’ activities.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (
s
ee more details here
).
An overview of an upscale resort casino set against a stunning backdrop and lit up during the nighttime.
Caesars Entertainment Inc. (NASDAQ:
CZR
)
Short % of Float As of April 16: 11.59%
Number of Hedge Fund holders: 79
Caesars Entertainment Inc. (NASDAQ:CZR), a corporation focused on gaming and hospitality, has ownership, leasehold interests, branding rights, or management control over facilities located in 18 different U.S. states. These venues include features such as slot machines, video lottery terminals, electronic tables, and hotels. Additionally, Caesars offers both retail and online sports betting services spanning 32 regions throughout North America, along with iGaming operations in five of those areas within the continent.
In 2024, Caesars Digital set new benchmarks with $1.2 billion in net revenue, marking a 20% increase from the previous year. During the fourth quarter specifically, the division reported $303 million in net revenue. However, the firm highlighted that poor sports betting performances in October and December affected these numbers. If not for those low holding periods, the revenues within this sector would likely have reached around $370 million.
Much of this expansion can be attributed to the iGaming segment, which experienced a 65% increase in net revenues for Q4. The surge was driven by products available through the Caesars Palace Online application as well as the introduction of the updated Horseshoe app. In January, Caesars Entertainment Inc. (NASDAQ:CZR) debuted its inaugural branded online casino called Caesars Casino Live at their location in Pennsylvania. They also have intentions to roll out comparable branded studios in both New Jersey and Michigan sometime in the first half of the year.
Buckley Capital provided the following comments about Caesars Entertainment, Inc. (NASDAQ:CZR) in their Q3 report for 2024.
investor letter
:
“We recently added
Caesars Entertainment, Inc.
We have added stock (NASDAQ:CZR) to our portfolio with an average purchase price of around $37 per share. Our view is that through ownership of CZAR, we acquire top-tier properties encompassing not only its own casino real estate but also its digital ventures—anticipated to account for nearly 70% of projected 2025 EBITDA—all at what we consider a very reasonable valuation.
In the coming year, several key events are expected to unfold: notable debt reduction, turning the corner towards robust earnings from the company’s digital operations, and strong free cash flow production. These developments lead us to anticipate increased optimism among investors, driving up the stock value.
Currently valued at approximately $8.6 billion based on market capitalization, we foresee potential growth ranging between 50% to 100% over the span of 12 to 24 months ahead.As we know it now, CZR came into being in July 2020 through the amalgamation of traditional Caesars Entertainment and Eldorado Resorts. The leadership from Eldorado, spearheaded by their CEO Tom Reeg—who boasts a stellar history of enhancing shareholder wealth—assumed control over CZR’s operations. Under Reeg’s guidance, which centers on boosting long-term free cash flow (FCF) and reducing debt, his objectives match those of the stakeholders. It should be noted he possesses 700,000 shares upon full vesting, currently valued at around $25 million…”
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)
Overall, CZR
ranks 1st
On our roster of top high-short-interest stocks to consider purchasing currently, we recognize the upward trajectory of CZR. However, our confidence leans toward AI stocks as they present substantial opportunities for significant financial gains over a compressed timeframe. Notably, one particular AI stock has surged since the start of 2025, contrasting with many prominent AI equities which have declined approximately 25% during this period. Should you seek an alternative AI investment offering greater prospects compared to CZR yet trading below five times its earnings value, explore our detailed analysis outlined in our latest report.
cheapest AI stock
.
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and
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.
Disclosure: None. This piece was initially published at
Insider Monkey
.