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Penn National Gaming (PENN) Gains But Lags Market: What You Should Know

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Penn National Gaming (PENN - Free Report) closed the most recent trading day at $50.87, moving +0.41% from the previous trading session. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.4%.

Prior to today's trading, shares of the casino operator had lost 2.22% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 6.46% and lagged the S&P 500's loss of 0.91% in that time.

Wall Street will be looking for positivity from Penn National Gaming as it approaches its next earnings report date. The company is expected to report EPS of $0.50, up 614.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.49 billion, up 44.91% from the prior-year quarter.

PENN's full-year Zacks Consensus Estimates are calling for earnings of $2.67 per share and revenue of $5.83 billion. These results would represent year-over-year changes of +153.4% and +62.83%, respectively.

Investors should also note any recent changes to analyst estimates for Penn National Gaming. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% lower. Penn National Gaming currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Penn National Gaming has a Forward P/E ratio of 18.96 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.45.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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