Penn National Gaming (PENN): Today's Featured Leisure Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Penn National Gaming ( PENN) pushed the Leisure industry higher today making it today's featured leisure winner. The industry as a whole closed the day down 1.3%. By the end of trading, Penn National Gaming rose $0.70 (1.4%) to $51.03 on average volume. Throughout the day, 822,239 shares of Penn National Gaming exchanged hands as compared to its average daily volume of 635,800 shares. The stock ranged in a price between $49.67-$51.51 after having opened the day at $49.75 as compared to the previous trading day's close of $50.33. Other companies within the Leisure industry that increased today were: Diversified Restaurant Holdings ( BAGR), up 4.0%, Chuy's Holdings ( CHUY), up 2.1%, Morgans Hotel Group Company ( MHGC), up 1.9% and Empire Resorts ( NYNY), up 1.6%.
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Penn National Gaming, Inc., together with its subsidiaries, owns and manages gaming and pari-mutuel properties in the United States and Canada. It engages in gaming on slot machines and table games. Penn National Gaming has a market cap of $4.0 billion and is part of the services sector. The company has a P/E ratio of 26.5, above the S&P 500 P/E ratio of 17.7. Shares are up 2.5% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Penn National Gaming a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Penn National Gaming as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Premier Exhibitions ( PRXI), down 8.1%, MTR Gaming Group ( MNTG), down 7.8%, Renren ( RENN), down 6.4% and Jamba ( JMBA), down 5.8% , were all laggards within the leisure industry with Yum Brands ( YUM) being today's leisure industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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