Rating Change #8
Penn National Gaming (PENN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- Net operating cash flow has slightly increased to $102.29 million or 9.12% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.15%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Hotels, Restaurants & Leisure industry average. The net income increased by 42.5% when compared to the same quarter one year prior, rising from $36.16 million to $51.53 million.
- PENN NATIONAL GAMING INC has improved earnings per share by 41.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PENN NATIONAL GAMING INC continued to lose money by earning -$1.08 versus -$3.69 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus -$1.08).
- Powered by its strong earnings growth of 41.17% and other important driving factors, this stock has surged by 83.55% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PENN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 12.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. Penn National Gaming has a market cap of $3.2 billion and is part of the services sector and leisure industry. Shares are up 18.1% year to date as of the close of trading on Wednesday.You can view the full Penn National Gaming Ratings Report or get investment ideas from our investment research center.
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