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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 $44.91, moving +0.31% from the previous trading session. This move lagged the S&P 500's daily gain of 1.24%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.15%.

Coming into today, shares of the casino operator had lost 10.57% in the past month. In that same time, the Consumer Discretionary sector lost 8.26%, while the S&P 500 lost 2.45%.

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 $0.41 per share, which would represent a year-over-year decline of 25.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.51 billion, up 18.28% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.86 per share and revenue of $6.23 billion, which would represent changes of -25% and +5.58%, respectively, from the prior year.

Any recent changes to analyst estimates for Penn National Gaming should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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.

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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Penn National Gaming is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Penn National Gaming is holding a Forward P/E ratio of 24.01. For comparison, its industry has an average Forward P/E of 21.15, 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 168, 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.

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


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