Caesars Entertainment (CZR) just had the best quarter ever in its Digital segment.

The company’s sports betting and iGaming segment hit $85 million in adjusted EBITDA last quarter, four times what it generated the year before. That is not a rounding error. That is a business inflecting.

Caesars runs the largest casino network in the country across 18 states. Its legacy business generates over $11 billion in revenue.

For years the digital side was a drag. It burned cash while the company piled up debt building it.

That phase appears to be over.

Free cash flow is projected to reach $1.3 billion in 2026 as major construction projects are completed. Management is targeting a 4x leverage ratio by year-end.

There is also active interest from external bidders in a takeover. The stock has been up nearly 14% year to date while the S&P 500 has gone nowhere.

The chart reflects the business turn.

Trend. The EMAs are stacked on the daily time frame. An EMA, or exponential moving average, is a line that tracks a stock’s average price over a set period, with greater weight given to recent prices. When the short-term EMA sits above the longer-term EMA, and both are rising, buyers have been in control.

The 8-day EMA at $25.92 is above the 20-day EMA at $24.85, the price is above both, and both are trending higher. That is the first thing I need to see.

Pattern. The stock has been consolidating in a tight range off the lows, holding above the stacked EMAs without giving ground. That kind of compression after a sustained move higher is the pattern I look for before a squeeze.

Squeeze. A squeeze occurs when a stock’s price range tightens to the point where energy builds for a directional move. On a daily it has not fired yet. When it fires on volume, that is the trigger.

Your Action Plan

Earnings are on April 28 after the close. That is 15 days away.

If the squeeze fires before then, the move could carry into the print. If earnings show continued digital progress and debt paydown, the stock has room to run toward the analyst target near $32.

I do not yet have a position in CZR. However, if I do move on it, I’ll disclose my full game plan in Daily Profits Live.