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PENN Entertainment (PENN): Reassessing Valuation After a Prolonged Share Price Slide

Simply Wall St · 1d ago

PENN Entertainment (PENN) has quietly slid over the past year, with the stock down about 31% and more than 60% over three years, even as revenue keeps inching higher.

See our latest analysis for PENN Entertainment.

At around a 31% 1 year total shareholder return decline and a 90 day share price return of roughly minus 31%, sentiment around PENN looks like it is still fading as investors reassess how much risk they are willing to take for its turnaround story.

If PENN’s recent slide has you reconsidering your options, this could be a useful moment to explore fast growing stocks with high insider ownership as a way to uncover other compelling ideas.

With shares now trading well below analyst targets despite modest revenue growth and sharply improving earnings, the key question is whether PENN is a mispriced turnaround candidate or if the market already anticipates its future upside.

Most Popular Narrative: 30% Undervalued

Against a last close of $13.76, the most popular narrative argues PENN’s fair value sits meaningfully higher, hinging on digital and omni channel upside.

Enhanced omni channel strategies such as the successful cross sell between retail casino properties and digital platforms, demonstrated by substantial year over year increases in both retail and online theoretical play suggest PENN can unlock higher customer lifetime value, increase retention, and boost both revenues and EBITDA margin over time.

Read the complete narrative.

Want to see what kind of revenue climb, margin lift, and earnings jump are baked into that view? The narrative’s model spells it out in surprising detail.

Result: Fair Value of $19.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside depends on PENN’s loss making interactive business scaling quickly and offsetting competitive, regulatory, and structurally weaker legacy retail markets.

Find out about the key risks to this PENN Entertainment narrative.

Build Your Own PENN Entertainment Narrative

If you see PENN’s story differently or want to stress test the assumptions yourself, you can build a custom view in just minutes, Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding PENN Entertainment.

Ready for more high conviction ideas?

Before you move on, put Simply Wall Street’s powerful screener to work so you do not miss the next opportunity lining up behind PENN.

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.