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

In the latest trading session, Penn National Gaming (PENN) closed at $74.19, marking a -0.15% move from the previous day.

This story originally appeared on Zacks

In the latest trading session, Penn National Gaming (PENN) closed at $74.19, marking a -0.15% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day.

- Zacks

Heading into today, shares of the casino operator had lost 4.1% over the past month, lagging the Consumer Discretionary sector's loss of 0.52% and the S&P 500's gain of 2.96% in that time.

Investors will be hoping for strength from PENN as it approaches its next earnings release, which is expected to be November 4, 2021. In that report, analysts expect PENN to post earnings of $0.84 per share. This would mark a year-over-year decline of 9.68%. Our most recent consensus estimate is calling for quarterly revenue of $1.5 billion, up 32.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $5.79 billion, which would represent changes of +164.6% and +61.65%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PENN. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. PENN is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, PENN is holding a Forward P/E ratio of 22.97. For comparison, its industry has an average Forward P/E of 23.45, which means PENN is trading at a discount to the group.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.

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