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Here's Why Investors Should Retain Penn National (PENN) Stock
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Penn National Gaming, Inc. (PENN - Free Report) is likely to benefit from Barstool Sports expansion, strategic partnerships and 3C’s initiatives. However, dismal traffic stemming from the coronavirus pandemic along with stiff competition from peers is a concern.
Let us discuss the factors that highlight why investors should hold on to the stock for the time being.
Growth Catalysts
Penn National continues to focus on Barstool Sports expansion across the United States. The company’s Barstool Sportsbooks and iCasino offerings in Michigan and Pennsylvania continue to drive performance. On Mar 11, 2021, the company launched the Barstool Sportsbook app in Illinois, where ot performed better than expected in the first 30 days of launch. During the period, 54,700 new customers were registered.
Going forward, the company the company announced that it will continue to invest in projects, which will generate EBITDA in the short term. Notably, the company remains confident about its long-term growth that will be supported by differentiated omnichannel approach. Also, it plans to launch standalone Barstool branded entertainment destinations, thereby acting as a virtual sports books, where sports betting is allowed.
Meanwhile, Penn National continues to expand and leverage its brand power. Its strategic partnerships with DraftKings, PointsBet, theScore and The Stars Group bode well. These partnerships will help the company maximize sport betting and iGaming across 19 states. DraftKings will cover Florida, Missouri, Ohio, Pennsylvania and West Virginia for 10 years.
Moreover, Penn National continues to focus on the new generation of cordless, cashless and contactless technologies that are collectively known as 3C’s. Such initiatives are likely to improve efficiency and customer service, thereby boosting the top line. Going forward, the company plans to launch the 3C's across its casinos in Pennsylvania. It also plans to roll out in other regions, subject to regulatory approvals.
Concerns
Image Source: Zacks Investment Research
Shares of Penn National have declined 11.7% so far this year against the industry’s growth of 124.1%. The dismal performance was caused by the coronavirus pandemic. COVID-related travel restrictions continued to impact the company’s performance significantly. Demand for casino gaming and related amenities was low, primarily due to the pandemic.
Furthermore, the company is continuously facing intense competition from various casinos, video lottery, gaming at taverns and other Internet wagering services.
Some better-ranked stocks in the same space include Red Rock Resorts, Inc. (RRR - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and Century Casinos, Inc. (CNTY - Free Report) . Red Rock sports a Zacks Rank #1, while Boyd Gaming and Century Casinos carry a Zacks Rank #2 (Buy).
Red Rock has a trailing four-quarter earnings surprise of 166.2%, on average.
Boyd Gaming has a three-five year earnings per share growth rate of 19.8%.
Century Casinos 2021 earnings are expected to surge 119.9%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Shutterstock
Here's Why Investors Should Retain Penn National (PENN) Stock
Penn National Gaming, Inc. (PENN - Free Report) is likely to benefit from Barstool Sports expansion, strategic partnerships and 3C’s initiatives. However, dismal traffic stemming from the coronavirus pandemic along with stiff competition from peers is a concern.
Let us discuss the factors that highlight why investors should hold on to the stock for the time being.
Growth Catalysts
Penn National continues to focus on Barstool Sports expansion across the United States. The company’s Barstool Sportsbooks and iCasino offerings in Michigan and Pennsylvania continue to drive performance. On Mar 11, 2021, the company launched the Barstool Sportsbook app in Illinois, where ot performed better than expected in the first 30 days of launch. During the period, 54,700 new customers were registered.
Going forward, the company the company announced that it will continue to invest in projects, which will generate EBITDA in the short term. Notably, the company remains confident about its long-term growth that will be supported by differentiated omnichannel approach. Also, it plans to launch standalone Barstool branded entertainment destinations, thereby acting as a virtual sports books, where sports betting is allowed.
Meanwhile, Penn National continues to expand and leverage its brand power. Its strategic partnerships with DraftKings, PointsBet, theScore and The Stars Group bode well. These partnerships will help the company maximize sport betting and iGaming across 19 states. DraftKings will cover Florida, Missouri, Ohio, Pennsylvania and West Virginia for 10 years.
Moreover, Penn National continues to focus on the new generation of cordless, cashless and contactless technologies that are collectively known as 3C’s. Such initiatives are likely to improve efficiency and customer service, thereby boosting the top line. Going forward, the company plans to launch the 3C's across its casinos in Pennsylvania. It also plans to roll out in other regions, subject to regulatory approvals.
Concerns
Shares of Penn National have declined 11.7% so far this year against the industry’s growth of 124.1%. The dismal performance was caused by the coronavirus pandemic. COVID-related travel restrictions continued to impact the company’s performance significantly. Demand for casino gaming and related amenities was low, primarily due to the pandemic.
Furthermore, the company is continuously facing intense competition from various casinos, video lottery, gaming at taverns and other Internet wagering services.
Zacks Rank & Key Picks
Penn National currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same space include Red Rock Resorts, Inc. (RRR - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and Century Casinos, Inc. (CNTY - Free Report) . Red Rock sports a Zacks Rank #1, while Boyd Gaming and Century Casinos carry a Zacks Rank #2 (Buy).
Red Rock has a trailing four-quarter earnings surprise of 166.2%, on average.
Boyd Gaming has a three-five year earnings per share growth rate of 19.8%.
Century Casinos 2021 earnings are expected to surge 119.9%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>