Penn National Gaming (PENN Quick QuotePENN - Free Report) shares rallied 4.9% in the last trading session to close at $117.37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.2% loss over the past four weeks.

Notably, positive investor sentiments are being witnessed as government bodies are issuing permits for the set-up of casinos, online and offline. This along with increased optimism over an accelerated recovery of the travel industry coupled with continuity in vaccinations is likely to have driven the stock higher.

Price and Consensus

This casino operator is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of +366.7%. Revenues are expected to be $1.14 billion, up 2.1% 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 National Gaming, the consensus EPS estimate for the quarter has been revised marginally 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 >>>>