4 Stock Picks to Celebrate 40 Years: Penn National Gaming

[view original post]

PENN has room to run despite its sizable 12-month lead

Schaeffer’s Investment Research was built from scratch on Bernie Schaeffer’s vision of providing accessible professional-grade trading information to retail traders. This remains our mission today, 40 years later. Bernie –and the Schaeffer’s team — has never been one for swinging for base hits. We are always seeking the next grand slam — in business and in trading. Options are incredibly attractive to traders with this high risk and high reward mentality. Profits are literally uncapped, while your downside risk is limited to your initial investment.

Thank you for joining us on this journey within the options industry, and we look forward to seeing you as we continue to trade. We hope you enjoy one of our carefully chosen stock picks from our team of top traders. 

Want a full breakdown of all of Schaeffer’s Investment Research’s top stock picks? Click here for complimentary (and instant!) access. Thank you for 40 years of support!

Gambling stock, Penn National Gaming (NASDAQ:PENN), may be up nearly 100% year-over-year, but PENN has carved out a steady downtrend since March. The shares now sit around the $70 area, which represents half Penn National Gaming stock’s all-time highs and was a key inflection point back in fall 2020. As PENN’s 14-Day Relative Strength Index (RSI) drifts below 28 and into “oversold” territory, a look back at similar readings in the past show good buying opportunities.

Penn National Gaming has expanded rapidly into new areas with its expansion of Barstool Casinos. And consider for a moment that Florida, Arizona, and Connecticut all recently approved sports betting at the state level. This trend is likely to continue as more states pass gambling legislation, making PENN in pole position to capitalize on such macro tailwinds.

Many analysts remain on the sidelines, and a shift toward upgrades and/or price-target hikes could provide tailwinds for Penn National Gaming stock. Of the 13 brokerages covering PENN, six maintain “hold” or “strong sell” ratings.

There is also room for a potential short squeeze on Penn National Gaming stock. Short interest tapered off in the most recent reporting period, yet the 13.25 million shares sold short accounts for nearly 9% of PENN’s total available float.