Despite its considerable 12-month lead, PENN still has leeway
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Gambling share, Penn National Gaming (NASDAQ: PENN), may be up almost 100% year over year, but PENN has been on a steady downtrend since March. Shares are now in the $ 70 range, which is half of the all-time highs for Penn National Gaming stock and was a major turning point in the fall of 2020. As PENN’s 14-Day Relative Strength Index (RSI) falls below 28 and into “oversold” A look back at similar values in the past shows good buying opportunities.
Penn National Gaming has quickly expanded into new areas with the expansion of the Bartool Casinos. And consider for a moment that Florida, Arizona, and Connecticut all recently approved state-level sports betting. This trend is likely to continue as more states pass gambling laws, putting PENN in the forefront of capitalizing on such macroeconomic tailwinds.
Many analysts stay on the sidelines, and a shift towards upgrades and / or target increases could provide a tailwind for Penn National Gaming stock. Of the 13 brokerage firms that cover PENN, six maintain a “Hold” or “Sell Strong” rating.
There is also room for a potential short squeeze on Penn National Gaming stock. Short rates declined over the last period, but the 13.25 million stocks sold short account for nearly 9% of the total available circulation of PENN.