|Bid||48.38 x 1300|
|Ask||48.35 x 800|
|Day's Range||47.62 - 48.71|
|52 Week Range||33.30 - 74.29|
|Beta (5Y Monthly)||1.62|
|PE Ratio (TTM)||17.62|
|Earnings Date||Jul 22, 2020 - Jul 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar 17, 2020|
|1y Target Est||62.13|
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
Visits to hotels, casinos, and vacation websites are picking up—signs that a recovery in leisure air travel may be under way as the summer vacation season kicks off.
[Editor's Note: "Even as Penn National Gaming Stock Rebounds, Consider Other Casino Plays" was originally published April 17, 2020. It is regularly updated to include the most relevant information.]Source: Jeffrey J Coleman / Shutterstock.com What's next for Penn National Gaming (NASDAQ:PENN) stock? Shares have skyrocketed in recent weeks. With many states allowing casinos to reopen after the novel coronavirus shutdowns, investors are betting on a quick rebound. But, who's to say we'll see a V-shaped recovery at the gaming tables?Casino stocks offer high risk, but high potential returns. Yet, Penn National may not be your best option. Firstly, the company mostly leases the real estate under its casinos. This may have been a smart financial engineering move. But it leaves them fewer liquidity options relative to peers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSecondly, shares trade at a premium to stronger rivals like Las Vegas Sands (NYSE:LVS) and MGM Resorts (NYSE:MGM). This could make them better ways to play a potential industry rebound, as might VanEck Vectors Gaming ETF (NASDAQ:BJK), which holds all four names in its 42-stock exchange-traded fund portfolio.Also, it's questionable whether casino revenues will bounce back to normal right away. Given the industry's high fixed costs, even a 20% decline in revenue could mean bad news. Especially for weaker names like Penn National.In short, it may be better to skip out on this "too hot to touch" regional casino play. Let's dive in, and see why PENN stock isn't your "best bet." Penn National Post-PandemicCan Penn National survive the coronavirus? When the pandemic first hit America, Wall Street's answer was a resounding "no" as shares fell from above $39 in February to as low as $3.75 in March. Yet, with casinos reopening from coast to coast, shares have rebounded more than eight-fold, to around $31.60 per share.Will shares continue to climb? It's possible. As this Seeking Alpha contributor recently wrote, half of the company's casinos reopen by May 31. This includes properties in Louisiana, Missouri, and Mississippi. Also, casinos on the Las Vegas strip can reopen starting on June 4. That means a reopening of the company's Vegas properties (Tropicana, M Resort) could be around the corner.Yet, these states are imposing strict social distancing guidelines. This could mean things won't return to 100% for quite some time.But, there's another big risk specific to PENN stock. The company leases, not owns, most of its properties. In fact, the company was a pioneer in the casino REIT (real estate investment trust) trend.In 2013, the company spun off most of its real estate as the first casino REIT, Gaming and Leisure Properties (NASDAQ:GLPI). This transaction allowed them to realize the underlying value of its property. But while this boosted valuation, it left them exposed to heavy lease liabilities.As our own Matt McCall wrote April 3, Penn National carries $8.5 billion in lease liabilities on its balance sheet. In 2020 alone, the company must make $900 million in lease payments. This wouldn't be a problem if their casinos were generating cash flow. But how about now, after its properties sat idle for several months?Yet, the stock's current valuation doesn't reflect this weakness. In fact, shares now trade at a premium to peers. Richly Priced Relative to RiskThe recent rally in PENN Stock has made shares richly priced. The company's enterprise value/EBITDA (EV/EBITDA) ratio now stands at 15.1. That's a premium to the EBITDA multiples of Las Vegas Sands (11.9) and MGM (13.2).Sure, there may be good reason for this valuation discrepancy. Penn is a more of a regional play compared to these Vegas-centric rivals. Players may prefer to gamble closer to home, even as travel reopens post-pandemic. However, Penn National was on shakier ground financially coming into the pandemic.Granted, Penn's liquidity situation has improved in recent weeks. After a $675m equity and convertible debt offering, the company has plenty of capital to ride out the storm.Also, many of their liabilities are leases with GLPI, which could provide the company some rent relief. The spun-off REIT entity has already helped out its former parent, agreeing to buy several properties in exchange for $337.5 million in rent credits.To top it all off, the company has another catalyst at play. As InvestorPlace's Ian Cooper wrote May 22, the company's investment in Barstool Sports could help them grow their budding sports wagering business. PENN Stock Is Not Your "Best Bet"Casino reopenings, along with excitement over the company's sports betting catalyst, have led investors to bid up Penn National shares as of late. Should you join in, as it seems the stock could head back to past highs pretty soon?Not so fast! As I highlighted last month, other opportunities could offer a better risk/return proposition. PENN stock? Not so much. In short, this isn't your "best bet" on a casino industry rebound.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Even as Penn National Gaming Stock Rebounds, Consider Other Casino Plays appeared first on InvestorPlace.
Las Vegas Sands (LVS) closed the most recent trading day at $47.94, moving -1.26% from the previous trading session.
In a recent write-up, I discussed how Penn National (NASDAQ:PENN) stock isn't the best casino play out there. But, given how shares have skyrocketed in recent weeks, did I miss the mark? Or was I too early to the party, going bearish before the excitement dissipated?Source: Casimiro PT / Shutterstock.com A little from column A, and a little from column B.On one hand, chalk up my concerns about valuation to a case of splitting hairs. With investors looking to bet on a rebound post-coronavirus, I didn't anticipate casino stocks moving so high so fast.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlso, there's another factor at play: the company's investment in Barstool Sports, and the potential synergies between the sports podcasting giant and Penn's budding sports betting business. * 7 Red-Hot Biotech Stocks Racing to Develop a Coronavirus VaccineOn the other hand, investors may have gotten ahead of themselves. Casinos from coast to coast are opening back up. But it's not as if they're going back to 100% capacity anytime soon. With social distancing rules in place, it's going to be much less lively at the tables and slots.So, what does that mean for PENN stock? Don't expect shares to crash back to March's fire sale prices. But, it's reasonable to assume shares could take a breather after this month's epic rally.Let's dive in and see why today's not the time to dive into this stock. The Good, Bad, and Ugly With PENN StockWhile I am bearish on this stock's near-term prospects, I do believe the company has some unique strengths relative to other casino stocks. Unlike larger rivals like MGM (NYSE:MGM), Las Vegas Sands (NYSE:LVS), and Wynn (NASDAQ:WYNN), this company is much less tied to Las Vegas.The company owns two major properties out in the desert. But it's the collection of regional properties that makes up the core of Penn National.As InvestorPlace's Will Ashworth wrote May 26, the company's properties in Louisiana and Mississippi have already reopened. Properties in other states are slated to open up in the coming weeks. But despite this positive development, there is some "bad" to consider with this stock.Namely, that gaming revenues won't return to normal for quite some time. With social distancing rules limiting the number of players on the casino floor, it's tough to expect revenues to rebound back to levels seen pre-pandemic.And now, the ugly - by which I mean the company's "asset-light strategy." I discussed this in more detail in my last write-up. In short, I'm talking about the company's love of sale-leaseback deals instead of owning casino real estate outright.While this may have been a smart strategy during boom times, it leaves them more vulnerable during a downturn. However, thanks to a recent convertible debt offering, liquidity may be less of an issue than it was in recent months.Also, there's the company's Barstool investment to consider. Investors may be excited how. But it could be more hype than game-changer. Could Barstool Deal Fuel Massive Upside?It's not just the specter of reopening that's driving PENN stock higher. It's the Barstool Sports connection as well. Back in January, the company spent $163 million for a 36% stake in the sports podcasting juggernaut. As part of the deal, the company has the option to increase its stake up to 50% within three years.Why is Penn making such a big bet on Barstool? It isn't for the podcasts. It's for potential synergies with the company's sports betting operations. As our own Matt McCall discussed earlier this month, the sports betting legalization trend is a big opportunity for Penn National.Yet, with big opportunity comes massive competition. Companies like DraftKings (NASDAQ:DKNG) and Flutter Entertainment's Fanduel (OTCMKTS:PDYPY) already have first-mover advantage. Buying Barstool may give Penn instant access to a pool of millennial-aged, sports-obsessed potential customers. But will that be enough to give them an edge?Only time will tell. Also, will novel coronavirus mean a delay or cancellation of popular sports this fall? The NFL season is set to start on time. But the NBA, along with college football, remain up in the air.Investors have bid up the company's shares in anticipation of massive success for their sportsbook. In light of uncertainty, this appears to be too much, too soon. Bottom Line: Steer Clear of PENN StockPenn National offers investors an interesting mix. Firstly, it's a solid regional casino play. As states allow gaming facilities to reopen, shares could move higher as gamblers return to the table. Also, the company can be seen a strong sports betting play, thanks to their budding sportsbook operations, along with the Barstool partnership.Yet, all of these positives are likely priced into shares. Until shares take a breather, skip out on PENN stock, and consider other casino stocks out there.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Despite Catalysts, Penn Stock Remains a Sell appeared first on InvestorPlace.
Although the Big Three casinos are getting ready to open for business again in Las Vegas, Wall Street is urging caution and tempering investor expectations. UBS analyst Robin Farley reiterated her neutral position on Las Vegas Sands (NYSE: LVS), MGM Resorts (NYSE: MGM), and Wynn Resorts (NASDAQ: WYNN) while simultaneously lowering her price targets for all three gambling halls. Nevada Gov. Steve Sisolak announced yesterday that he set a June 4 reopening date for the casino industry, but as the stocks of the industry giants have roared back after collapsing under the weight of the coronavirus pandemic, Farley thinks it's time to apply the brakes.
Las Vegas Sands (LVS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The Zacks Analyst Blog Highlights: MGM, Wynn Resorts, Las Vegas Sands and Eldorado Resorts
Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) shuttered their casinos in the Chinese gambling mecca of Macao. Then, once the contagion took hold in the United States, their casinos in Las Vegas followed suit. Now, as the Las Vegas casinos begin to transition toward reopening, investors in both companies have to deal with the fallout from weeks of closure.
Gambling companies like Penn National Gaming (NASDAQ:PENN) stock have been left in ruins, with Lady Luck nowhere to be found.Source: Casimiro PT / Shutterstock.com In fact, thanks to the novel coronavirus, casino stocks like PENN hemorrhaged cash instead of raking it in. MGM Resorts (NYSE:MGM) was reportedly losing up to $14.4 million a day. Boyd Gaming (NYSE:BYD) lost up to $3.2 million a day, says Best Casinos' contributor James Murray.Long-term investors didn't fare much better. Since the chaos began, Las Vegas Sands (NYSE:LVS) slipped from a high of $70 to a current price of about $48. Caesars Entertainment (NASDAQ:CZR) fell from $14.60 to a current price of about $11. Boyd Gaming fell from $35 to near $20.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Excellent Penny Stocks Ready to RoarBut with economies starting to reopen, now may be the perfect time to dig for diamonds in the rough. One of the stocks to consider is Penn National, whose stock recovered from low of $3.75 to nearly $30 per share. If the U.S. economy can successfully reopen, PENN stock could revisit highs of nearly $40. Long-Term Growth is IntactLike most casinos, Penn National Gaming had a tough first quarter, said President and CEO Jay Snowden."Penn National saw a phenomenal start to 2020, with record results in January and February. Our Company was performing well ahead of guidance in every segment, driven in large part by the introduction of retail sports betting at several properties, which has served as a catalyst for both gaming and non-gaming revenue. We also saw a strong positive reaction, including our stock price hitting an all-time high, following the announcement of our strategic investment in Barstool Sports."Unfortunately, growth was cut short in March 2020 thanks to the coronavirus, which required closure. As a result, first-quarter revenues fell $166.5 million year over year to $1.12 billion. Penn National Gaming also saw a loss of $608.6 million, as compared to a profit of $41 million in the first quarter of 2019.But as Snowden added, "The company's long-term growth strategy remains intact" as the company moves forward with projects like its Barstool Sports app. Barstool Sports App Could Be Worth MillionsWith torpedoed results, Penn National Gaming took a 36% stake in Barstool Sports for $163 million in cash and stock to help grow its sports betting and entertainment offering. By 2023, the company could pay another $62 million to increase its stake to 50%.This is great news for Penn National Gaming for two reasons. One, at the moment, Barstool has an audience of 66 million and growing. Better still, Barstool views on social media have already soared 50% since April 2020, a sign of an engaged audience."Penn will have its Barstool (sports betting) app running by the third quarter," said Macquarie's Chad Beynon, "and we believe the app (and the Barstool) database can be worth $10 to $25 per share of equity over time."In addition, we have to realize that legal sports betting is a big multibillion-dollar business. In fact, according to the American Gaming Association's Research on Sports Betting, "Our research showed sports betting, if available online and reasonably taxed, could have an impact of $41.2 billion annually."Plus, nearly 40% of U.S. adults are currently betting on sports. Nevada Approves Casino Reopening PlansBoosting the sector even more was the Nevada Gaming Commission approving guidelines to reopen Las Vegas again soon.Under new guidelines, casinos will be limited to 50% occupancy. Conventions will be limited to 250 people. Restaurants will have limited seating and allow for appropriate distancing. Seating at table games will be limited as well. With blackjack, for example, seating will be limited to three players. Chairs will only be permitted at every other slot machine, too.While there's not a defined timeline for reopening, at least they'll reopen sooner than later.While it won't be business as usual for quite some time, we are beginning to see big signs of recovery. From here, I strongly believe now is the best time to buy down-but-not-out casino stocks like Penn National Gaming.Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 Reasons to Buy Penn National Gaming Stock appeared first on InvestorPlace.
Sheldon Adelson, the CEO of Las Vegas Sands (NYSE: LVS), made clear last month that the resort company was in the market for an acquisition. It would have to be the right target in the right market, namely Asia, and be a resort operator that could complement Sands' own operational attributes. John DeCree, an analyst at the boutique investment bank Union Gaming, thinks Wynn Resorts (NASDAQ: WYNN) would be the perfect target for Adelson.
For those eager to return to the glitz and excitement of Sin City, Las Vegas Sands (NYSE: LVS) offered good news today: The casino and resort giant is now accepting reservations for the June 1 reopening of its Venetian Resort. Located on the world-famous Las Vegas Strip, the luxurious Venetian is the second-largest hotel in the world, and houses the Las Vegas Sands headquarters. Las Vegas Sands closed its facilities on March 19 because of the COVID-19 pandemic.
Casino giant Caesars’ mountains of debt raises uncertainty about its pending merger with Eldorado (ERI) amid the pandemic, says Dan Wasiolek, senior equity analyst at Morningstar.
Investors like the company’s online business model, against that of capital-intensive traditional casinos that have been hard hit by Covid-19 closures.
Concerns over the coronavirus pandemic continues to hurt the gambling stocks. Moreover, Las Vegas Sands (LVS) abandons its pursuit of Integrated Resort (IR) development in Japan.
There's no question Americans are facing unprecedented stresses these days. Data suggests some Americans are relying on vices such as alcohol, tobacco and cannabis to get through the health crisis. At the same time, gamblers have been driven online for the time being due to casino closures.When times are good, people like to celebrate with a drink or a smoke or a roll of the dice. When times are hard, they turn to these activities as a distraction or a means of self-medication. Regardless of how you feel about the activities themselves, here are seven "sin stocks" to buy that Morningstar analysts say have significant upside.Philip Morris International Inc. (NYSE: PM)Philip Morris is one of the largest global tobacco companies and holds nearly a 30% market share of the international cigarette and heated tobacco markets.Analyst Philip Gorham says Marlboro customer loyalty is extremely high and Philip Morris has considerable pricing power. The company has a first-mover advantage in heated tobacco, but it remains to be seen whether or not heated tobacco can completely offset lost cigarette volumes over time. Gorham says a successful launch of iQOS in the U.S. would generate completely incremental revenue given the company currently has no U.S. products.Philip Morris shares also pay a sizable 6.9% dividend.Morningstar has a Buy rating and $98 price target for PM stock.See Also: 7 Best Cheap Stocks To Buy Or Sell Cronos Group Inc (NASDAQ: CRON)Cronos is one of the "big four" Canadian legal producers of cannabis and owner of brands such as PEACE NATURALS, COVE and Lord Jones. Cronos reported impressive 180% revenue growth in the first quarter, but it also reported a $45 million operating loss.Analyst Kristoffer Inton says write-downs associated with lower prices due to oversupply in the Canadian market were the cause of the loss. However, Inton says Cronos' write-downs are shrinking, whereas other cannabis producers' losses are growing. Morningstar is projecting Canadian cannabis demand will grow 20% annually over the next decade, and Cronos has the balance sheet to expand its market share.Morningstar has a Buy rating and $8.50 fair value estimate for CRON stock.Las Vegas Sands Corp. (NYSE: LVS)Las Vegas Sands is an international casino operator that owns casino resorts and hotels in Las Vegas, Macau and Singapore. Analyst Dan Wasiolek says Macau and Singapore are the keys to the bull case for Las Vegas Sands.Macau accounted for about 59% of Sands' earnings in 2019, and Singapore was another 31%. Wasiolek says Sand's has a dominant position in the high-growth Cotai Strip in Macau, and it has a duopoly in place in Singapore through at least 2030. COVID-19 shutdowns in Las Vegas and a 97% drop in gross gaming revenue due to COVID-19 may be scary, but Wasiolek estimates Las Vegas sands has 18 months of liquidity at nearly zero revenue.Mornigstar has a Buy rating and $62 fair value estimate for LVS stock.British American Tobacco PLC (NYSE: BTI)British American Tobacco is an international tobacco company that owns brands such as Lucky Strike, Newport and Camel and generates 45% of its revenue from the U.S. market.While cigarette volumes are likely in secular decline, Gorham says British American's accelerated volume declines in fiscal 2019 may be particularly troubling to investors. However, he says the company may be best-positioned to capitalize on the next generation of tobacco products, including its Vype and Vuse vaping brands an Glo heated tobacco brand. Gorham says British American's buyout of Reynolds American was a solid strategic move given its pricing power and the value of its assets.Morningstar has a Buy rating and $59 target for BTI stock.Anheuser Busch Inbev NV (NYSE: BUD)Anheuser Busch Inbev is the world's largest brewer and owner of brands such as Budweiser, Beck's and Corona.Gorham says the worst of the downturn may be yet to come for Anheuser Busch, but the company has plenty of liquidity to navigate the crisis. In the longer term, he says the company's near monopoly and cost advantages in developed markets make the stock a solid investment, and its potential for free cash flow generation isn't fully priced in at current levels. Gorham projects volumes will fall 20% in the first half of 2020 and only 7% in the second half of the year.Morningstar has a Buy rating and $96 fair value estimate for BUD stock.Altria Group Inc (NYSE: MO)Altria Group is one of the world's largest tobacco companies, but it's also one of the most diversified sin stocks. In addition to being the parent company of Philip Morris USA, Altria has a more than 10% ownership stake in Anheuser Busch, a 35% stake in vaping leader JUUL, and a 45% stake in cannabis stock Cronos.Gorham says COVID-19 has certainly disrupted Altria's business, but its underlying business trends in the first quarter appear to be solid. Cigarette shipment volume was up 6%, and management reiterated its guidance that industry-wide volume will drop between 4% and 6% this year.Morningstar has a Buy rating and $54 fair value estimate for MO stock.See Also: 7 Best-Performing Stocks Of 2020: Buy, Sell Or Hold?Constellation Brands, Inc. (NYSE: STZ)Constellation Brands is one of the world's largest producers of wine, spirits and imported beer and owns brands such as Arbor Mist, Black Velvet and SVEDKA. Constellation also recently upped its ownership stake in leading Canadian cannabis producer Canopy Growth Corp (NYSE: CGC) to nearly 40%.Analyst Nicholas Johnson says Constellation's beer business should help support numbers for now, and the sell-off in the stock has pushed it to "egregiously cheap" levels. In fact, given his bullish long-term outlook for Constellation, Johnson says it's his top stock pick in the pure-play beverage group.Morningstar has a Buy rating and $215 price target for STZ stock.Latest Ratings for CRON DateFirmActionFromTo May 2020StifelMaintainsHold Apr 2020Piper SandlerDowngradesOverweightNeutral Apr 2020B of A SecuritiesDowngradesBuyNeutral View More Analyst Ratings for CRON View the Latest Analyst RatingsSee more from Benzinga * Here's How Much Investing 0 In The 2018 Cronos Listing Would Be Worth Today * The Road To Recovery For Las Vegas Casino Stocks * Cannabis Stock Rally Puts Short Sellers In The Red For 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Prominent U.S. fund managers piled into big-name technology stocks and bottom-fished in the beaten-down energy sector as markets reeled from the coronavirus-fueled selloff in the first quarter, regulatory filings released on Friday showed. Stanley Druckenmiller's Duquesne Family Office increased its holding in Amazon by 713%.
When it comes to Dow Jones Industrial Average stock 3M (NYSE:MMM), investors have been faced with their share of ailments off and on the price chart. But following a new sales report, will the old doggish trend in MMM stock remain the bears' best friend? Or will it mark new profitable beginnings for bulls? Let's take a closer look at what's going on with 3M right now.Source: r.classen / Shutterstock.com Many stocks in today's market can point to the novel coronavirus as a source for challenges facing those companies in an unfolding socially distanced environment. Take a look at the grounding in airline giant Delta Airlines (NASDAQ:DAL) or the TKO in casino heavyweight Las Vegas Sands (NYSE:LVS) as two common victims. It's not pretty. That's not the entire story though.Many blue-chip stocks within the Dow Jones are adapting. Home Depot (NYSE:HD) is one constituent whose price chart points at a company figuring out how to successfully service consumers through the coronavirus pandemic. And tech giant Microsoft (NASDAQ:MSFT), the market's largest publicly traded company, simply appears to be well-built for this unthinkable, disruptive socioeconomic shift. Unfortunately, 3M (and, by extension, MMM stock) is different.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite the industrial conglomerate's well-positioned N-95 respirator mask success during the new pandemic and some spoils from other health-related business units, 3M's April sales dipped 11% from the year ago period according to a report released Thursday. Softness in other key market segments, including safety and industrial, consumer, transportation and electronics weighed on the company's total sales decline. * 7 Earnings Reports to Watch Next Week The news comes after 3M announced in late April it was withdrawing full-year guidance due to the pandemic. Management stated it will keep investors informed vis-a-vis monthly updates until a more accurate, longer-term forecast is possible. The first of these reports also appears to have been a surprise for Wall Street.MMM stock slid to its weakest levels since late March during Thursday's session. However, a rebound in the broader market from out-the-gate selling following back-to-back days of profit-taking helped lift the stock well off intraday lows to close down just 0.75%.But is 3M a pullback worth buying? MMM Stock Monthly Price Chart Source: Charts by TradingViewEarnings at the tail end of April saw investors bid up MMM stock by more than 2.50% and notch a two-month high. The action also established follow-through confirmation for a bullish monthly chart hammer candlestick formed during March's broader market correction. That's not all though.Technically, the hammer is well-supported by the 62% retracement level dating to 3M's 2009 financial crisis bottom. Also favorable, the candlestick's body completed narrowly above a long-term trend-line. It's the sort of evidence that makes the case for a meaningful bottom following a two-year long bear market. But a hard pullback over the past two weeks might raise a flag regarding the pattern's durability.A second look at 3M's monthly chart reveals the immediate post-earnings bid has yielded to another potential lower high pattern in MMM stock's existing downtrend. The rally high also failed rather quickly on an initial challenge of nearby resistance. It's not the sort of price action investors caught purchasing 3M's hammer are likely excited to see.The good news, if any, is 3M's stock is offering a pullback opportunity with solid risk versus reward characteristics. Shares are inside a support area from roughly $115 to $141 and above the trend-line, which held the body of April's hammer. Stochastics have also signaled a bullish crossover inside oversold territory.My advice for any would be buyers of 3M is to set a stop-loss beneath $129. This level minimizes dollar risk to about 5% as of Thursday's close. At the same time, relative to the recent high a return of nearly 20% is possible and skews the risk profile heavily in favor of buying stock. Moreover and to make sure an old and friendly doggish trend doesn't continue to rollover, this exit smartly pulls the plug if a bearish April pivot high is confirmed and 3M falls ominously inside the lower half of its hammer bottom.The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Bad News Is Good News for Todayas 3M Stock Investors appeared first on InvestorPlace.
The hospitality and leisure sector has been hit hard by the novel coronavirus outbreak. But as economies start to reopen, the space is a worthwhile place to look for bargains. Penn National Gaming (NASDAQ:PENN) is one of the names in the sector that could be worth buying as the firm works to prepare a social-distancing gambler's paradise. PENN stock has lost more than 50% of its value since February, making now a good time to size up the firm's future prospects.It's worth noting that Penn National comes with a fair bit of risk. The firm depends heavily on disposable income, something people may not have much of if the coronavirus continues to wreak havoc on the labor market. Plus, Penn gets the majority of its revenue from in-person gamblers at its racetracks; if the firm's other bets aren't successful and large-scale gatherings continues to be limited, its shares could suffer. The Evolution of PENN StockOnce upon a time, buying Penn National stock was simply a bet on small-time, local gambling. Since then, it has grown into something more, a process that's been pushed forward by the rise of the coronavirus. InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow Penn National spans a variety of geographic locations, something the firm believes makes it stand out from its peers like Las Vegas Sands (NYSE:LVS) that focus primarily on Las Vegas. By contrast, Penn manages just a handful of Vegas properties while the rest of its casinos and racetracks are found in cities from Houston to Detroit. But the company has also been working on its online game. Its CEO, Jay Snowden, has been touting its online betting assets since the company's properties were closed down. During the firm's most recent earnings call, Snowden said Penn's online gaming business is gaining traction.In line with the push toward online gambling, Penn has placed an extra focus on sports betting, which could prove to be the company's saving grace if its casinos remain closed throughout the summer; for now more than half of the states that Penn is operating in permit sports betting. Online Gambling and Penn NationalPENN stock hasn't recovered much because reopening casinos amid a pandemic is a tall order. But investors who can stomach the volatility and have a longer timeline should focus on Penn National's potential.For one, there's a good chance online gambling's popularity will surge as people look for ways to entertain themselves. But more importantly, many states are likely to start relaxing their online gambling laws instead of reopening traditional casinos. Penn's reputation as a local gambling spot will give the firm some credibility in the e-gaming universe and could help boost the company's profile when sports betting comes online. And speaking of reputation, the company's purchase of Barstool Sports will add to its appeal as an online sports betting hub.Of course, with sports on hold and gambling laws still a question mark, it's worth noting that there are a few aspects of that scenario that are far from certain.However, if the e-gaming landscape does play out as Penn is hoping and the company is able to secure a spot as one of the top sports betting providers in the U.S., that will be a powerful tailwind once the casinos do reopen. The Bottom Line on Penn NationalThere's no denying that it's risky to buy Penn stock right now; a lot has to fall into place for that bet to pay off down the line. But there's also a great deal to like about the company's unique operating model.And as InvestorPlace columnist Dana Blankenhorn pointed out ahead of Penn's earnings, the stock has been trading in tandem with other gambling plays like Las Vegas Sands. Investors have to ask themselves whether or not PENN stock is much different. I believe it is, especially in the midst of a pandemic. Penn's geographical diversity is positive because some of its properties will likely open sooner than others. What's more, those that do open will have customers nearby, whereas Las Vegas' casinos will need their customers to travel to them. So I'll concede that buying the shares of a casino operator while the coronavirus pandemic is ongoing isn't a safe bet. But Penn looks like the best play in the industry for now. Laura Hoy has a Finance degree from Duquesne University and has been writing about financial markets for the past 8 years. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN. As of this writing, she did not own any of the aforementioned stocks. The post Penn National Stock Is a Risky Bet, But Itas the Best Gambling Name Right Now appeared first on InvestorPlace.