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Penn National Gaming (PENN) Outpaces Stock Market Gains: What You Should Know

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Penn National Gaming (PENN - Free Report) closed at $51.40 in the latest trading session, marking a +1.04% move from the prior day. This change outpaced the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.

Prior to today's trading, shares of the casino operator had lost 3.37% over the past month. This has lagged the Consumer Discretionary sector's loss of 3.13% and the S&P 500's gain of 0.87% in that time.

Wall Street will be looking for positivity from Penn National Gaming as it approaches its next earnings report date. On that day, Penn National Gaming is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 614.29%. Our most recent consensus estimate is calling for quarterly revenue of $1.49 billion, up 44.91% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.67 per share and revenue of $5.83 billion. These totals would mark changes of +153.4% and +62.83%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Penn National Gaming. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.84% lower. Penn National Gaming is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Penn National Gaming is holding a Forward P/E ratio of 19.24. For comparison, its industry has an average Forward P/E of 18.6, which means Penn National Gaming is trading at a premium to the group.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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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