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PENN vs. CHDN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Gaming sector have probably already heard of PENN Entertainment (PENN - Free Report) and Churchill Downs (CHDN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
PENN Entertainment has a Zacks Rank of #2 (Buy), while Churchill Downs has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PENN likely has seen a stronger improvement to its earnings outlook than CHDN has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PENN currently has a forward P/E ratio of 20.04, while CHDN has a forward P/E of 23.83. We also note that PENN has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHDN currently has a PEG ratio of 3.52.
Another notable valuation metric for PENN is its P/B ratio of 1.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CHDN has a P/B of 17.38.
These metrics, and several others, help PENN earn a Value grade of A, while CHDN has been given a Value grade of C.
PENN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PENN is likely the superior value option right now.
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PENN vs. CHDN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Gaming sector have probably already heard of PENN Entertainment (PENN - Free Report) and Churchill Downs (CHDN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
PENN Entertainment has a Zacks Rank of #2 (Buy), while Churchill Downs has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PENN likely has seen a stronger improvement to its earnings outlook than CHDN has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PENN currently has a forward P/E ratio of 20.04, while CHDN has a forward P/E of 23.83. We also note that PENN has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHDN currently has a PEG ratio of 3.52.
Another notable valuation metric for PENN is its P/B ratio of 1.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CHDN has a P/B of 17.38.
These metrics, and several others, help PENN earn a Value grade of A, while CHDN has been given a Value grade of C.
PENN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PENN is likely the superior value option right now.