With economies reopening, casino stocks are again showing signs of life. Like most casinos, Penn National Gaming (PENN) had a tough first quarter with the coronavirus.
However, according to CEO Jay Snowden, “The company’s long-term growth strategy remains intact.” Better, it could do even better with its stake in the Barstool app, which will help it expand into online sports betting and entertainment. According to Macquarie analyst Chad Beynon, “the app database can be worth $10 to $25 per share of equity over time.”
The stock is shooting even higher on news it is reopening five properties in Mississippi. On May 18, it reported five casino properties in Louisiana, which represents 25% of its portfolio, are reopening as well.
As we hear of even more openings, we expect to see higher highs in PENN.