PENN Entertainment, Inc. (NASDAQ: PENN) is North America’s biggest gaming entertainment provider. The company operates hotels and casinos, which account for a bulk of revenue generation. Penn has also been expanding its football in the sports betting industry as it becomes legal in more states across the US.
Additionally, it owns various service markets and trademarks, including Argosy, Greektown, Hollywood Gaming, Hollywood Casino, and M Resort.
PENN Entertainment Stock Performance
PENN Entertainment stock had a dismal performance in 2023, dropping 12.78% of its value year-to-date. In the past six months, the stock has slid by 4.60%. However, the stock closed trading on December 7.00% higher at $25.53 per share. It has also had a modest gain of 0.27% in pre-market trading.
Why PENN Stock Is Rising
PENN Entertainment released its Q3 earnings report on November 2, 2023. Since the quarterly report came out, PENN stock has been inching higher. PENN Entertainment reported an EPS of $1.21, beating analysts by 245.71%. Its reported revenue of $1.62 billion also beat estimates by 0.20% despite dropping 0.34% year over year.
Since the report, PENN Entertainment has revamped its strategy via various actions to boost revenue. For instance, on November 15, PENN Entertainment announced that ESPN Bet, the official sportsbook for ESPN, was now available in 17 states.
On November 27, the company announced the groundbreaking ceremony for a new hotel at Hollywood Casino Columbus. The next day, it announced a groundbreaking ceremony for its relocated Hollywood Casino Aurora.
At the tail end of November, PENN Entertainment revealed a deal with the National Hockey League for its online sports betting brands, Score Bet and ESPN Bet. In early December, the company announced it was partnering with the Quail Hollow Club to expand the presence of ESPN Bet in North Carolina.
Its most recent announcement was on December 11, 2023, when PENN Entertainment announced the groundbreaking ceremony for a new hotel tower at the M Resort. The new hotel is part of four new growth projects they announced. PENN Entertainment has earmarked $850 million for these four projects.
While some of these new revenue streams may take months or years to come online, investors have been paying attention. Consequently, interest in the stock has been rising steadily. In the past month, PENN stock has risen 11.39%.
PENN Stock Forecast
Various analysts have recently upgraded their outlook for PENN stock. It now has a solid buy rating. Analysts predict a high of $45 and a low of $22. Their average projection for the stock is $33.67, a 31.88% upside on the last closing price of $25.53.
Should You Buy PENN Stock?
PENN Entertainment has traditionally been known for its brick-and-mortar casino business. However, the company is successfully transitioning into online betting, including casino betting. Additionally, its Disney deal could help PENN Entertainment succeed with ESPN Bet in the online sports betting market. Consequently, as a long-term bet, PENN stock is a good deal. However, it will take time to succeed in North America’s sports betting industry.
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