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4 Reasons to Bet on Pinnacle Entertainment (PNK) Stock Now
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Headquartered in Las Vegas, NV, Pinnacle Entertainment, Inc. engages in ownership, operation, and development of casinos and related hospitality as well as entertainment businesses. It operates through Midwest, South, and West segments.
The company owns and operates 16 gaming entertainment businesses, located in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio and Pennsylvania. It also holds a majority interest in the racing license owner, as well as a management contract, for Retama Park Racetrack outside of San Antonio, TX.
Stock Price Movement: Pinnacle Entertainment’s shares have outperformed the Zacks categorized Gaming industry, over the past six months. While the stock returned 52.6%, the industry gained a mere 1.6%. The improvement in employment rate and the rise in tourism numbers in Las Vegas should continue to boost demand at the company’s properties in the region and aid the stock in performing well in the quarters ahead.
Earnings & Revenue Growth: Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) for the company in question.
While Pinnacle Entertainment has a historical earnings per share (EPS) growth rate of 51.8% compared with the industry average of 21.5%, investors should really focus on its projected growth. Here, the company is looking to grow at a rate of over 100%, significantly higher than the industry average of just 21.5%.
Propelling the earnings forward is the company’s solid revenue growth story. Notably, projected sales growth for the current year is 8.2%, which is higher than the broader industry’s estimate of 4.3%.
Return on Equity: Pinnacle Entertainment delivered return on equity (ROE) of 26.9% in the trailing 12 months, compared with the industry’s gain of 8.3%. This indicates that the company reinvests more efficiently compared with its peers.
Estimate Revisions: Over the past 60 days, full-year 2017 earnings estimates have moved up over 100%. Such robust earnings estimate revisions testifies the unwavering confidence that analysts have in the company and also adds to the optimism.
Other Stocks to Consider
Other favorably placed stocks in the broader Consumer Discretionary sector include Marcus Corporation (MCS - Free Report) , Penn National Gaming, Inc. (PENN - Free Report) and Century Casinos, Inc. (CNTY - Free Report) . While Marcus sports a Zacks Rank #1, Penn National Gaming and Century Casinos carry the same Zacks Rank as Pinnacle Entertainment.
The Zacks Consensus Estimate for Marcus’ 2017 earnings climbed 7.9%, over the past 60 days. Further, for 2017, EPS is expected to grow 10.3%.
The Zacks Consensus Estimate for Penn National Gaming’s 2017 earnings climbed 38.1%, over the past 60 days. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 67.45%.
The Zacks Consensus Estimate for Century Casinos’ 2017 earnings climbed 27.3% over the last 60 days. Further, for 2017, EPS is anticipated to increase 47.4%.
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4 Reasons to Bet on Pinnacle Entertainment (PNK) Stock Now
Headquartered in Las Vegas, NV, Pinnacle Entertainment, Inc. engages in ownership, operation, and development of casinos and related hospitality as well as entertainment businesses. It operates through Midwest, South, and West segments.
The company owns and operates 16 gaming entertainment businesses, located in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio and Pennsylvania. It also holds a majority interest in the racing license owner, as well as a management contract, for Retama Park Racetrack outside of San Antonio, TX.
This Zacks Rank #2 (Buy) company has good prospects and should make a value addition to your portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
What Makes Pinnacle Entertainment a Solid Choice?
Stock Price Movement: Pinnacle Entertainment’s shares have outperformed the Zacks categorized Gaming industry, over the past six months. While the stock returned 52.6%, the industry gained a mere 1.6%. The improvement in employment rate and the rise in tourism numbers in Las Vegas should continue to boost demand at the company’s properties in the region and aid the stock in performing well in the quarters ahead.
Earnings & Revenue Growth: Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) for the company in question.
While Pinnacle Entertainment has a historical earnings per share (EPS) growth rate of 51.8% compared with the industry average of 21.5%, investors should really focus on its projected growth. Here, the company is looking to grow at a rate of over 100%, significantly higher than the industry average of just 21.5%.
Propelling the earnings forward is the company’s solid revenue growth story. Notably, projected sales growth for the current year is 8.2%, which is higher than the broader industry’s estimate of 4.3%.
Return on Equity: Pinnacle Entertainment delivered return on equity (ROE) of 26.9% in the trailing 12 months, compared with the industry’s gain of 8.3%. This indicates that the company reinvests more efficiently compared with its peers.
Estimate Revisions: Over the past 60 days, full-year 2017 earnings estimates have moved up over 100%. Such robust earnings estimate revisions testifies the unwavering confidence that analysts have in the company and also adds to the optimism.
Other Stocks to Consider
Other favorably placed stocks in the broader Consumer Discretionary sector include Marcus Corporation (MCS - Free Report) , Penn National Gaming, Inc. (PENN - Free Report) and Century Casinos, Inc. (CNTY - Free Report) . While Marcus sports a Zacks Rank #1, Penn National Gaming and Century Casinos carry the same Zacks Rank as Pinnacle Entertainment.
The Zacks Consensus Estimate for Marcus’ 2017 earnings climbed 7.9%, over the past 60 days. Further, for 2017, EPS is expected to grow 10.3%.
The Zacks Consensus Estimate for Penn National Gaming’s 2017 earnings climbed 38.1%, over the past 60 days. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 67.45%.
The Zacks Consensus Estimate for Century Casinos’ 2017 earnings climbed 27.3% over the last 60 days. Further, for 2017, EPS is anticipated to increase 47.4%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>