Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Penn Gaming Stock Is Ready To Rebound

By (Jea Yu )Stock MarketsFeb 16, 2022 04:14AM ET
Penn Gaming Stock Is Ready To Rebound
By (Jea Yu )   |  Feb 16, 2022 04:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Domestic casino operator Penn National Gaming (NASDAQ:PENN) made a spectacular rise from pandemic lows of $3.75 in March 2020 soaring to a high of $142 a year later only to collapsed to a low of $37.76 in January 2022. The Company continues to grow its Barstool Sportsbook brand and additional physical casino locations which integrate the pandemic accommodative “3Cs” of being cashless, cardless, and contact less. Penn Gaming Studios plans to leverage the omni-channel synergy effects drive growth in its development of Barstool Blackjack and Barstool Slots. As more states legalize online sportsbooks and iGaming, Penn Gaming is prepared to launch and bolster its footprint both digitally and physically. While earnings only came in a 50% of expectations, the Company is laying the groundwork for the future. Prudent investors seeking a domestic play on casino gaming and sportsbetting can look for opportunistic pullbacks in shares of Penn Gaming.

Q4 FY 2021 Earnings Release

On Feb. 3, 2022, Penn Gaming released its fiscal year Q4 2021 earnings for the quarter ending September 2021. The Company reported a GAPP profit of $0.26 per share versus consensus analyst estimates for a profit of $0.52 per share, missing by (-$0.26) per share. Revenues grew 53.1% year-over-year (YoY) to $1.57 billion beating consensus estimates for $1.51 billion. Adjusted EBITDAR rose 31.5% YoY to $480.5 million. The Company authorized a new $750 million shares buyback program. Penn Gaming CEO Jay Snowden commented:

“I am pleased to report a strong finish to another transformative year for Penn National. Our fourth quarter revenues of $1.6 billion and Adjusted EBITDAR of $480.5 million exceeded both 2020 and 2019 levels as our best-in-class operating teams continue to deliver impressive results despite the ongoing pandemic. In addition, we accomplished several strategic objectives this quarter that have laid the foundation for future growth, including the completion of our acquisition of Score Media and Gaming Inc., the continued expansion of Penn Interactive operations, the opening of our fourth casino in Pennsylvania and the roll-out of new technology at many of our casinos.”

Flat Guidance

Penn Gaming issued flat revenue guidance for full-year 2022 to come in between $6.07 billion to $6.39 billion versus $6.22 billion consensus analyst estimates. The Company expects full-year adjusted EBITAR of $1.85 billion to $1.95 billion.

CEO Comments

CEO Jay Snowden noted two new states launched sports betting, Iowa, and West Virginia. The launch of online sports betting in Louisiana brings a total of 12 states that Penn operates sports gaming in and iCasino gaming in four states. The Company expects new launches in Ohio, Ontario, and Maryland in 2022. The acquisition of the Score galvanizes Penn Gaming’s leadership in digital content, gaming, and technology in North America. The Company plans to acquire the remaining stake in Barstool Sports, Inc. in 2023. Penn Gaming opened its 44th U.S. location with a Hollywood Casino in Morgantown, Pennsylvania, marking its fourth property in that state. The latest casino incorporates cardless, cashless, and contactless ‘mywallet’ experience which exists in eight properties in Pennsylvania and Ohio. These serve as a template for future casinos moving forward. The Barstool Sportsbook saw “sizeable” growth with increased traction during football season to become one of the leading operators in the New Jersey market. Barstool social media reach exceeds 144 million, a 25% YoY increase. Barstool opened its first physical sports bar location in Chicago with additional locations expected including Philadelphia to bolster its brand and fuel its omnichannel strategy.

Penn Gaming Stock Chart
Penn Gaming Stock Chart

PENN Price Trajectories

Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for PENN stock. The weekly rifle chart formed peaked near the $87.24 Fibonacci (fib) level before forming a weekly mini inverse pup all the way down to the 10-band bottoming out at $37.76. The weekly rifle chart downtrend is starting to wane as the weekly 5-period moving average (MA) slopes up at $44.65 with the weekly 200-period MA support at $45.16 as shares tighten to the 15-period MA at $49.61. The weekly stochastic is forming a divergence bottom as indicated by the higher band recoils as it attempts to test the 20-band. The weekly market structure low (MSL) buy triggers above the $51.21. The daily rifle chart uptrend has a rising 5-period MA at $48.91 followed by the 15-period MA at $45.93 and 50-period MA at $47.40. The daily stochastic formed a pretzel mini pup through the 80-band. The daily upper Bollinger Bands (BBs) sit at $52.24. Prudent investors can watch for opportunistic pullback levels at the $47.62 fib, $45.50, $43.36 fib, $40.70 fib, $37.76 fib, $35.64 fib, and the $32 fib level. Upside trajectories range from the $58.05 fib level up towards the $76.14 fib level.

Original Post

Penn Gaming Stock Is Ready To Rebound

Related Articles

Daniel Shvartsman
A Bear Market Shopping List By Daniel Shvartsman - Jun 25, 2022 14

Volatility has been the constant in the 2022 bear market. Wherever we go in the next 12-18 months, bargains are starting to emerge. Here are five stocks I think are positioned well...

Brett Owens
Almost 13% Yield Monthly? Come On By Brett Owens - Jun 24, 2022

Patience is the key to being a successful contrarian investor. We buy when fear is widespread. Bear markets are our friends. Let’s sit back and let the market’s...

Penn Gaming Stock Is Ready To Rebound

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Scott C Blakley
Scott C Blakley Apr 12, 2022 7:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Profitable company yet undervalued - it dis not rebound as you mentioned
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email