Penn National Gaming (PENN) closed the most recent trading day at $76.09, moving -0.54% from the previous trading session. This change lagged the S&P 500's 0.33% gain on the day.
Coming into today, shares of the casino operator had lost 8.12% in the past month. In that same time, the Consumer Discretionary sector gained 1.42%, while the S&P 500 gained 1.74%.
Wall Street will be looking for positivity from PENN as it approaches its next earnings report date. The company is expected to report EPS of $0.71, up 142.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.36 billion, up 345.21% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.41 per share and revenue of $5.38 billion. These totals would mark changes of +148.2% and +50.39%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PENN. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PENN is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PENN has a Forward P/E ratio of 31.74 right now. For comparison, its industry has an average Forward P/E of 25.72, which means PENN is trading at a premium to the group.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PENN in the coming trading sessions, be sure to utilize Zacks.com.
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