{"id":196735,"date":"2021-12-30T12:44:29","date_gmt":"2021-12-30T20:44:29","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=196735"},"modified":"2021-12-30T13:24:14","modified_gmt":"2021-12-30T21:24:14","slug":"penn-national-stock-high-beta-redemption-story-says-jpmorgan","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/","title":{"rendered":"Penn National Could Be High Beta Redemption Story, Says JPMorgan"},"content":{"rendered":"

Penn National Gaming (NASDAQ:PENN) stock is languishing through a forgettable 2021. With just one trading day left in the year, the shares are off 43.19 percent year-to-date, and reside almost 64 percent below the 52-week high. But some market observers believe 2022 redemption is possible.<\/p>\n

\"Penn
Penn National’s Hollywood Casino in Pennsylvania. JPMorgan says the stock is a high beta rebound candidate. (Image: Penn Live<\/em>)<\/figcaption><\/figure>\n

The regional gaming name appears on JPMorgan’s recently unveiled list of high beta momentum stocks that were punished this year that could rebound in 2022. Beta gauges a security’s volatility relative to the broader market. In simple terms, a high beta stock like Penn is likely to overshoot market moves in either direction, and when its momentum wanes, selling pressure can be severe.<\/p>\n

That’s been the case for Penn stock, as it’s shed nearly a third of its value over just the past 90 days. But there could be reasons to believe it will bounce back<\/a> in 2022.<\/p>\n

On the Secular Growth side various High Beta segments (such as payments, ecommerce, gaming, cybersecurity, biotech) have already seen significant multiple derating (i.e., -30% to -70%), yet fundamentals for many of these themes remain intact with continued strong secular growth and large addressable market sizes,\u201d<\/strong> says Dubravko Lakos-Bujas, JPMorgan chief U.S. equity strategist, in a note to clients.<\/p><\/blockquote>\n

While Penn is mired in a lengthy slump, it still has support among sell-side analysts.<\/a> Some market participants believe the bloodletting in the shares make the name too cheap to ignore.<\/p>\n

Penn Rebound Ingredients<\/h2>\n

Owing to its Barstool Sports\u00a0 book, the company is the largest regional casino operator — a trait some market participants may have lost sight of in the fervor surrounding online casinos and sportsbooks. Not only are regional casinos expanding margins at a healthy clip, Penn no longer has exposure to the volatility of the Las Vegas Strip. That could be a plus if the coronavirus pandemic pinches gaming operators in 2022.<\/p>\n

Still, Penn has some work to do to convince investors, many of whom ditched High Beta names for low volatility equities, to revisit the stock.<\/p>\n

\u201cInvestors have shed High Beta stocks precipitously and are back to paying record premium for Low Vol stocks,\u201d adds Lakos-Bujas.<\/strong><\/p>\n

Penn is the only gaming name on the JPMorgan list.<\/p>\n

Act Quick, Says Bank<\/h2>\n

Momentum can change on a dime, and to that end, stocks on the JPMorgan list, including Penn, could reverse for the better as soon as January<\/a>.<\/p>\n

\u201cHistorical analysis (30+ years) shows that the largest outperformance of High Beta stocks tends to be in January (i.e., tax-loss harvesting, investor bottom fishing, etc.),\u201d notes Lakos-Bujas. \u201cWe expect the upcoming ‘January effect’ to be even more pronounced this time around, given extreme positioning and sentiment, with a potential for a large High Beta squeeze.\u201d<\/strong><\/p>\n

From a technical perspective, if Penn stock can run 11 percent to its 50-day moving average, that could induce further buying.<\/p>\n","protected":false},"excerpt":{"rendered":"

Penn National Gaming (NASDAQ:PENN) stock is languishing through a forgettable 2021. With just one trading day left in the year, the shares are off 43.19 percent year-to-date, and reside almost 64 percent below the 52-week high. But some market observers believe 2022 redemption is possible. The regional gaming name appears on JPMorgan’s recently unveiled list […]<\/p>\n","protected":false},"author":46,"featured_media":196736,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nPenn National Stock High Beta Redemption Story, Says JPMorgan<\/title>\n<meta name=\"description\" content=\"Penn National stock could bounce back and regain its momentum over the near-term.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Penn National Stock High Beta Redemption Story, Says JPMorgan\" \/>\n<meta property=\"og:description\" content=\"Penn National stock could bounce back and regain its momentum over the near-term.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-30T20:44:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-12-30T21:24:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/penn.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"855\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/\",\"url\":\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/\",\"name\":\"Penn National Stock High Beta Redemption Story, Says JPMorgan\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/penn.jpg\",\"datePublished\":\"2021-12-30T20:44:29+00:00\",\"dateModified\":\"2021-12-30T21:24:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Penn National stock could bounce back and regain its momentum over the near-term.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-high-beta-redemption-story-says-jpmorgan\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/penn.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/penn.jpg\",\"width\":1280,\"height\":855,\"caption\":\"Penn National's Hollywood Casino in Pennsylvania. 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