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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Penn National Gaming ( PENN) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Penn National Gaming fell $0.24 (-1.9%) to $12.74 on light volume. Throughout the day, 1,544,422 shares of Penn National Gaming exchanged hands as compared to its average daily volume of 2,858,800 shares. The stock ranged in price between $12.64-$13.03 after having opened the day at $12.85 as compared to the previous trading day's close of $12.98. Other companies within the Leisure industry that declined today were: Country Style Cooking Restaurant Chain ( CCSC), down 5.1%, Dover Downs Gaming & Entertainment ( DDE), down 5.1%, Town Sports International Holdings ( CLUB), down 3.7% and MakeMyTrip ( MMYT), down 3.3%.

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 $993.9 million and is part of the services sector. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are down 9.4% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Penn National Gaming a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Penn National Gaming as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and disappointing return on equity.

On the positive front, 500.com Ltd ADR ( WBAI), up 12.7%, Noodles & Co Class A ( NDLS), up 8.4%, Chanticleer Holdings ( HOTR), up 7.5% and Sonic Corporation ( SONC), up 4.3% , were all gainers within the leisure industry with Wynn Resorts ( WYNN) being today's featured leisure industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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