Penn National Gaming has a market cap of $3.66 billion and an enterprise value of $5.61 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 21.55 and a forward price-to-earnings of 16.88. Its estimated growth rate for this year is 8.5%, and for next year it's pegged at 24%. This is not a cash-rich company, since the total cash position on its balance sheet is $217.43 million and its total debt is $2.18 billion.
From a technical perspective, PENN is currently trending well above both its 50-day and 200-day moving averages, which is bullish. This stock recently gapped up huge from $37 to $50.50 a share with massive upside volume. Following that move, shares of PENN have been trending sideways with the stock moving between $49 and $45.48 a share. A high-volume move outside of that range soon will likely lead to the next major trend for shares of PENN.
If you're in the bull camp on PENN, then I would look for long-biased once this stock manages to break out above some near-term overhead resistance levels at $49 to $50.50 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 890,463 shares. If that breakout triggers, then PENN will set up to re-test to enter new 52-week high territory, which is bullish technical price action. Some possibly upside targets are $55 to $60.International Game Technology One name in the casinos and gaming complex that insiders are snapping up a decent amount of stock in is International Game Technology (IGT). This company is engaged in the design, manufacture, and marketing of electronic gaming equipment and systems products. Insiders are buying this stock into weakness, since shares are off by 20% so far in 2012. International Game Technology has a market cap of $3.64 billion and an enterprise value of $5.23 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 16.01 and a forward price-to-earnings of 10.59. Its estimated growth rate for this year is 16.3%, and for next year it's pegged at 5.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $206.30 million and its total debt is $1.85 billion.
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