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Penn National Gaming (PENN) Gains As Market Dips: What You Should Know

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Penn National Gaming (PENN - Free Report) closed the most recent trading day at $47.28, moving +0.9% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, added 0.13%.

Heading into today, shares of the casino operator had lost 8.15% over the past month, lagging the Consumer Discretionary sector's loss of 2.75% and the S&P 500's gain of 2.36% in that time.

Penn National Gaming will be looking to display strength as it nears its next earnings release. On that day, Penn National Gaming is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 585.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.49 billion, up 44.91% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Penn National Gaming. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Penn National Gaming is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Penn National Gaming's current valuation metrics, including its Forward P/E ratio of 22.34. This valuation marks a premium compared to its industry's average Forward P/E of 17.3.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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