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Penn National Gaming (PENN) Gains As Market Dips: What You Should Know

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In the latest trading session, Penn National Gaming (PENN - Free Report) closed at $37.38, marking a +1.14% move from the previous day. This move outpaced the S&P 500's daily loss of 1.69%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the casino operator had lost 13.38% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.92% and the S&P 500's gain of 7.88% in that time.

Wall Street will be looking for positivity from Penn National Gaming as it approaches its next earnings report date. This is expected to be May 5, 2022. In that report, analysts expect Penn National Gaming to post earnings of $0.42 per share. This would mark a year-over-year decline of 23.64%. Our most recent consensus estimate is calling for quarterly revenue of $1.51 billion, up 18.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.87 per share and revenue of $6.25 billion. These totals would mark changes of -24.6% and +5.88%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Penn National Gaming. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate has moved 0.24% higher within the past month. Penn National Gaming is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Penn National Gaming is holding a Forward P/E ratio of 19.78. This represents a discount compared to its industry's average Forward P/E of 20.05.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 18% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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