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Penn National Gaming (PENN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Penn National Gaming (PENN - Free Report) closed at $44, marking a -0.79% move from the previous day. This move lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Heading into today, shares of the casino operator had lost 12.73% over the past month, lagging the Consumer Discretionary sector's gain of 0.44% and the S&P 500's gain of 6.02% in that time.

Penn National Gaming will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.41, down 25.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.51 billion, up 18.28% from the year-ago period.

PENN's full-year Zacks Consensus Estimates are calling for earnings of $1.86 per share and revenue of $6.23 billion. These results would represent year-over-year changes of -25% and +5.58%, respectively.

Investors might also notice recent changes to analyst estimates for Penn National Gaming. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.06% lower. Penn National Gaming currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Penn National Gaming is currently trading at a Forward P/E ratio of 23.79. For comparison, its industry has an average Forward P/E of 22.27, which means Penn National Gaming is trading at a premium to the group.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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