Hedgeye CEO Keith McCullough is adding Penn National Gaming to the long side of Investing Ideas. Below is a brief note.
For those of you who subscribe to The Call @Hedgeye, you heard Gaming, Lodging and Leisure analyst Todd Jordan and I walk through buying Penn Gaming (PENN) at the low-end of my Risk Range....
We're getting that alongside this #Overbought Signal in #NazVol this morning.
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PENN | ADDING TO BEST IDEAS LIST | BUYING THE BIG DIP Takeaway: With the stock 37% off its March high and likely positive earnings revisions looming, we’re adding PENN as a Hedgeye Best Idea Long HEDGEYE EDGE The Big Dipper – PENN’s stock has been crushed since star struck investors pushed the stock up based primarily on sports betting exuberance. We’ve been less enthusiastic regarding stocks, including DKNG, with significant online sports betting (OSB) exposure in recent months although our long term OSB outlook has not changed. In addition to Barstool founder Dave Portnoy’s misadventures, sentiment surrounding PENN’s OSB operations have contributed to the big dip. But we’d like to focus investors back on PENN’s brick & mortar operations which should provide significant EBITDA upside versus Street Q1 and full year 2021 and 2022 estimates and drive the stock back up close to previous highs. |
Buyem on red,
KM
