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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 $43.19, moving +1.86% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.53%.

Prior to today's trading, shares of the casino operator had lost 16.55% over the past month. This has lagged the Consumer Discretionary sector's loss of 10.68% and the S&P 500's loss of 6.58% in that time.

Wall Street will be looking for positivity from Penn National Gaming as it approaches its next earnings report date. This is expected to be February 3, 2022. On that day, Penn National Gaming is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 557.14%. Meanwhile, our latest consensus estimate is calling for revenue of $1.51 billion, up 46.87% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Penn National Gaming. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.06% lower. Penn National Gaming is currently a Zacks Rank #3 (Hold).

Digging into valuation, Penn National Gaming currently has a Forward P/E ratio of 22.47. This represents a premium compared to its industry's average Forward P/E of 16.14.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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