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

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In the latest trading session, Penn National Gaming (PENN - Free Report) closed at $41.65, marking a +0.31% move from the previous day. The stock lagged the S&P 500's daily gain of 0.71%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.15%.

Coming into today, shares of the casino operator had lost 17.36% in the past month. In that same time, the Consumer Discretionary sector lost 2.83%, while the S&P 500 gained 3.76%.

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 $0.41 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.

Investors should also note any 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% 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 22.27. This represents a premium compared to its industry's average Forward P/E of 21.63.

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 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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