PENN has room to run despite its sizable 12-month lead
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Gambling stock, Penn National Gaming (NASDAQ:PENN), may be up nearly 100% year-over-year, but PENN has carved out a steady downtrend since March. The shares now sit around the $70 area, which represents half Penn National Gaming stock’s all-time highs and was a key inflection point back in fall 2020. As PENN's 14-Day Relative Strength Index (RSI) drifts below 28 and into "oversold" territory, a look back at similar readings in the past show good buying opportunities.
Penn National Gaming has expanded rapidly into new areas with its expansion of Barstool Casinos. And consider for a moment that Florida, Arizona, and Connecticut all recently approved sports betting at the state level. This trend is likely to continue as more states pass gambling legislation, making PENN in pole position to capitalize on such macro tailwinds.
Many analysts remain on the sidelines, and a shift toward upgrades and/or price-target hikes could provide tailwinds for Penn National Gaming stock. Of the 13 brokerages covering PENN, six maintain "hold" or "strong sell" ratings.
There is also room for a potential short squeeze on Penn National Gaming stock. Short interest tapered off in the most recent reporting period, yet the 13.25 million shares sold short accounts for nearly 9% of PENN's total available float.