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PENN Entertainment (PENN) Moves 5.4% Higher: Will This Strength Last?

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PENN Entertainment (PENN - Free Report) shares ended the last trading session 5.4% higher at $14.58. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.7% loss over the past four weeks.

PENN Entertainment's stock move reflects optimism around the company’s updated organizational structure, which is designed to reduce overhead and improve decision-making across its core casino and digital businesses. The elimination of duplicative executive roles and tighter cost controls signal a stronger focus on efficiency and disciplined capital allocation. This reset appears to be reinforcing investor confidence in PENN’s ability to improve cash flow generation and support more durable, long-term performance.

This casino operator is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +52.3%. Revenues are expected to be $1.75 billion, up 5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For PENN Entertainment, the consensus EPS estimate for the quarter has been revised 20% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PENN going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

PENN Entertainment is a member of the Zacks Gaming industry. One other stock in the same industry, Nintendo Co. (NTDOY - Free Report) , finished the last trading session 2.2% higher at $16.38. NTDOY has returned -9.2% over the past month.

For Nintendo, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.2. This represents a change of +11.1% from what the company reported a year ago. Nintendo currently has a Zacks Rank of #4 (Sell).


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