PENN Entertainment (PENN) just handed the keys to its flagship theScore media platform in North America to former ESPN executive Nate Ravitz, a leadership move that reshapes its post ESPN Bet strategy.
See our latest analysis for PENN Entertainment.
Despite this strategic reshuffle, PENN Entertainment’s share price return tells a tougher story, with a roughly 27 percent 1 year total shareholder return decline and an even deeper 5 year slide suggesting sentiment is still cautious and momentum has been fading rather than building.
If PENN’s reset has you rethinking your exposure to consumer and gaming names, it might be a good time to broaden your search and discover fast growing stocks with high insider ownership.
With the stock trading well below analyst targets and long term returns still deeply negative, has Wall Street become too pessimistic on PENN’s reset, or is the current price already baking in any future turnaround?
Most Popular Narrative: 29% Undervalued
With PENN Entertainment last closing at $13.81 against a narrative fair value near $19.44, the valuation case hinges on a bold profitability reset.
Analysts expect earnings to reach $471.4 million (and earnings per share of $3.51) by about September 2028, up from $-75.6 million today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting $519.4 million in earnings, and the most bearish expecting $198.7 million.
Curious how a loss making operator earns a richer future multiple than today, even while growing slower than the wider market? The answer sits inside this forecast.
Result: Fair Value of $19.44 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the narrative unravels if interactive losses linger and regional casinos keep shrinking, limiting cash flow for buybacks, debt reduction, and tech reinvestment.
Find out about the key risks to this PENN Entertainment narrative.
Build Your Own PENN Entertainment Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a fresh perspective in just a few minutes with Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding PENN Entertainment.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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