Penn Entertainment Stock Intrinsic Value – 8 Analysts Weigh In on PENN Entertainment: See Their Latest Ratings for the Company
October 9, 2024
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PENN ($NASDAQ:PENN) Entertainment, also known as Penn National Gaming, is a leading provider of gaming and racing facilities across the United States. In the past three months, eight analysts have provided their ratings for PENN Entertainment, offering valuable insights into the company’s performance and prospects. These ratings have had a notable impact on PENN’s stock, with a decrease of 0.81% since their release. Let’s take a closer look at these perspectives to gain a better understanding of the current sentiment towards the company. They are optimistic about the company’s future, citing its strong financial performance and expansion into new markets as key factors. One analyst specifically highlighted PENN’s efforts in developing its online gaming platform as a significant growth opportunity. On the other hand, there are three analysts who have downgraded their rating from “Buy” to “Hold.” These analysts expressed some concerns about the potential impact of increased competition in the gaming industry and the uncertain regulatory environment.
However, they still see value in PENN’s stock and believe it has the potential for long-term growth. They have a more pessimistic outlook, citing concerns over the company’s high debt levels and potential risks associated with its recent acquisitions. They also note that PENN’s current valuation may not be sustainable in the long run. Overall, it is clear that analysts have varying opinions on PENN Entertainment’s prospects. However, it is worth noting that the majority of analysts are still bullish on the company’s future, with a total of six analysts maintaining a “Buy” or “Hold” rating. This suggests that PENN Entertainment is still seen as a solid investment opportunity by many in the financial community. In conclusion, with its strong presence in the gaming industry and efforts to expand into new markets, PENN Entertainment remains a company to watch. The diverse range of analyst perspectives provides valuable insights for investors looking to make informed decisions about their investment in the company’s stock.
Price History
On Friday, the stock for PENN ENTERTAINMENT opened at $19.34 and closed at $19.28, showing a slight increase of 1.26% from the previous closing price of 19.04. One analyst from Jefferies Financial Group gave PENN ENTERTAINMENT a “buy” rating, stating that the company has a strong presence in regional markets and is well-positioned for future growth. Similarly, another analyst from Goldman Sachs also assigned a “buy” rating, citing the company’s solid financials and potential for expansion into sports betting.
However, not all analysts were as optimistic about PENN ENTERTAINMENT. One analyst from Morgan Stanley gave the company an “underweight” rating, expressing concern over potential challenges in integrating recent acquisitions and the impact of COVID-19 on the gaming industry. Another analyst from Barclays gave PENN ENTERTAINMENT an “equal weight” rating, stating that while the company has a strong market position, its valuation is currently in line with its peers. Similarly, an analyst from BMO Capital Markets also gave an “equal weight” rating, citing concerns over the company’s high debt levels. This was based on the potential for new gaming legislation and strong performance of the company’s online casino. Overall, it seems that the majority of analysts are positive about PENN ENTERTAINMENT’s prospects, with six out of eight giving a “buy” or equivalent rating. Investors will continue to monitor PENN ENTERTAINMENT’s performance and take into consideration the opinions of these analysts as they make decisions about the stock. With a variety of ratings and target prices, it is clear that there is some disagreement among analysts about the company’s future, but the overall sentiment remains positive. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Penn Entertainment. More…
| Total Revenues | Net Income | Net Margin |
| 6.36k | -490 | -0.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Penn Entertainment. More…
| Operations | Investing | Financing |
| 658.9 | -258.6 | -853 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Penn Entertainment. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.17k | 12.69k | 22.95 |
Key Ratios Snapshot
Some of the financial key ratios for Penn Entertainment are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.1% | 19.5% | -0.5% |
| FCF Margin | ROE | ROA |
| 5.6% | -0.6% | -0.1% |
Analysis – Penn Entertainment Stock Intrinsic Value
After conducting a thorough analysis on PENN ENTERTAINMENT, it is evident that the company has strong fundamentals. Our team at GoodWhale has carefully examined key financial indicators such as revenue, earnings, and cash flow, as well as market and industry trends to determine the intrinsic value of PENN ENTERTAINMENT’s stock. Based on our proprietary Valuation Line, we have calculated that the intrinsic value of PENN ENTERTAINMENT share is currently at $46.3. This indicates that the stock is undervalued by a significant margin of 58.3%. This suggests that PENN ENTERTAINMENT’s stock has potential for growth and presents an opportunity for investors to purchase at a discounted price. Our analysis also indicates that PENN ENTERTAINMENT has a strong financial standing, with steady revenue and earnings growth. The company’s cash flow is also healthy, indicating its ability to meet financial obligations and invest in future growth opportunities. Furthermore, market and industry trends in the entertainment sector are also favorable for PENN ENTERTAINMENT. The rise of online gaming and the increasing popularity of sports betting provide a promising outlook for the company’s operations. In conclusion, GoodWhale believes that PENN ENTERTAINMENT is a solid investment opportunity with strong fundamentals and potential for growth. As the stock is currently undervalued, investors may want to consider adding it to their portfolio for long-term gains. However, as with any investment, we recommend conducting further research and consulting with a financial advisor before making any decisions. More…
Peers
The company has its headquarters in Wyomissing, Pennsylvania. Penn National Gaming Inc operates in the following segments: Gaming, Racing, and Hospitality. The company operates gaming facilities in Pennsylvania, Ohio, Louisiana, Illinois, Mississippi, and Maryland. The company was founded in 1969 and it employs around 26,000 people. Penn National Gaming Inc’s main competitors are DraftKings Inc, Caesars Entertainment Inc, and Boyd Gaming Corp. These companies are all gaming companies that operate in the United States.
– DraftKings Inc ($NASDAQ:DKNG)
DraftKings Inc is a digital sports entertainment and gaming company. It operates through two segments, Digital Sports and Gaming Platform, and Media Platform. The company was founded in 2012 and is headquartered in Boston, Massachusetts.
DraftKings Inc’s market cap is 5.93B as of 2022. The company has a Return on Equity of -105.71%.
DraftKings Inc operates a digital sports entertainment and gaming platform. The company offers daily fantasy sports, sports betting, and online gaming products. DraftKings Inc also operates a media platform that provides content and data products.
– Caesars Entertainment Inc ($NASDAQ:CZR)
Caesars Entertainment Inc is a gaming company that owns and operates casinos and resorts. As of 2022, the company has a market capitalization of 8.49 billion dollars and a return on equity of 19.66%. The company’s casinos are located in the United States, Canada, the United Kingdom, and Macau. The company’s resorts offer a variety of gaming, lodging, dining, entertainment, and retail options.
– Boyd Gaming Corp ($NYSE:BYD)
Boyd Gaming Corporation is an American gaming and hospitality company based in Las Vegas, Nevada. The company continues to be run by the Boyd family under the management of Sam Boyd, who founded the company in 1975. The company owns and operates 22 gaming properties in seven states. Boyd Gaming is the largest operator of casinos in Louisiana.
The company’s market cap is 5.71B as of 2022 and its ROE is 35.86%. The company operates 22 gaming properties in seven states and is the largest operator of casinos in Louisiana.
Summary
PENN Entertainment has been evaluated by 8 analysts in the past 3 months, with a consensus rating of PENN-0.81%. The analyst landscape for this company suggests a cautious outlook, with a slight downward trend. This could indicate potential challenges or concerns within the company’s performance and financials.
It is important for investors to conduct further research and analysis on PENN Entertainment in order to make informed investment decisions. Overall, the current analyst ratings suggest a need for caution when considering investing in this company.
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