Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential

2. Caesars Entertainment, Inc. (NASDAQ:CZR)

Appaloosa Management Stake Value: $73,524,000

Upside Potential as of May 5: 51.08%

Number of Hedge Fund Holders: 79

Caesars Entertainment, Inc. (NASDAQ:CZR) is a gaming and hospitality company. It operates gaming properties under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names. The company mainly serves leisure and entertainment seekers primarily in the United States through destinations such as Las Vegas, Atlantic City, and regional markets.

On April 29, 2025, Caesars Entertainment (NASDAQ:CZR) reported Q1 2025 earnings that fell short of Wall Street expectations. Normalized EPS was -$0.48 compared to -$0.44 year over year, missing consensus estimates by $0.30. Despite the earnings miss, the company’s revenue slightly exceeded expectations at $2.79 billion versus the projected $2.74 billion. Same-store adjusted EBITDA grew 4% over the prior year to $884 million, driven primarily by significant gains in its Digital segment. The company is undertaking a major property transformation. Caesars Entertainment (NASDAQ: CZR) is renovating Harveys Lake Tahoe into Caesars Republic Lake Tahoe with a $160 million transformation this summer. The 1.6 million-square-foot resort will be fully upgraded. The company also expanded its digital strategy, adding pari-mutuel horse race wagering to its Sportsbook app in Kentucky and Colorado, providing a seamless betting experience ahead of the Kentucky Derby.

On April 30, 2025, CFRA analyst Zachary Warring downgraded Caesars Entertainment (NASDAQ:CZR) stock from Buy to Hold. Warring also established a new price target of $30.00, down from the previous $39.00. The analyst noted that the “broader challenging macroeconomic environment and the company’s balance sheet issues” are the major reasons for the downgrade.