Penn (PENN, $92.85), DraftKings (DKNG, $59.50) get buy rating from Needham
Penn National Gaming shares got a buy rating from a Needham analyst who initiated coverage of the online gambling company on Tuesday.
Analyst Bernie McTernanat set a $151 price target on the shares. The analyst said that the risk-reward balance was compelling.
Needham views the North America gambling market as an emerging $35 billion opportunity. McTernanat suggested that the market is still in its nascent stages, with only 25% of the population having access to online sports betting and 10% with access to iGaming.
"We are bullish on the online sports betting and iGaming total addressable market in the U.S. and see the potential for Penn to take significant, profitable market share on the strength of Barstool's differentiated content-driven customer-acquisition strategy," analyst Bernie McTernan said in a report.
The analyst also noted that PENN spends significantly less than peers on external marketing, and that the company will be a net recipient of market access fees in roughly half of the U.S. where it has a regional casino, vs. online-only peers who are net payers.
Needham also initiated coverage of sports-betting company DraftKings with a buy rating and $81 price target. The Investment firm also added it to its Conviction List. According to Needham, DraftKings is a leader in the North America online gambling market.
PENN in downward trend: price dove below 50-day moving average on April 25, 2024
PENN moved below its 50-day moving average on April 25, 2024 date and that indicates a change from an upward trend to a downward trend. In of 29 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PENN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PENN entered a downward trend on April 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 24, 2024. You may want to consider a long position or call options on PENN as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PENN just turned positive on April 22, 2024. Looking at past instances where PENN's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PENN advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
PENN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.870) is normal, around the industry mean (11.865). P/E Ratio (4.474) is within average values for comparable stocks, (62.563). Projected Growth (PEG Ratio) (1.008) is also within normal values, averaging (1.549). Dividend Yield (0.000) settles around the average of (0.043) among similar stocks. P/S Ratio (0.437) is also within normal values, averaging (5.559).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. PENN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PENN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of gaming and pari-mutuel properties
Industry CasinosGaming