Why PENN Entertainment (PENN) Stands Out as a Leading Long-Term Growth Stock

Maximizing Your Investment Potential with Zacks Premium

No matter your background or level of investing experience, achieving greater confidence and success in the stock market is a universal goal. Zacks Premium provides a variety of resources to help investors reach these objectives.

Subscribers receive daily updates on the Zacks Rank and Industry Rank, complete access to the Zacks #1 Rank List, detailed equity research reports, and advanced stock screening tools. These features are designed to empower you to make more informed and confident investment decisions.

Additionally, Zacks Premium members can utilize the Zacks Style Scores for further insight.

Understanding Zacks Style Scores

The Zacks Style Scores were created to complement the Zacks Rank, offering investors additional metrics to evaluate stocks using three popular investment strategies. These scores are intended to help you identify stocks with the highest potential to outperform the market over the next month.

Each stock receives a letter grade—A, B, C, D, or F—based on its value, growth, and momentum characteristics. An 'A' rating signals the strongest potential, followed by B, C, and so on, making it easier to spot stocks likely to deliver superior returns.

The Style Scores are divided into four main categories:

Value Score

Value investors seek out quality stocks trading below their intrinsic worth, often before the broader market recognizes their potential. The Value Score evaluates companies using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, highlighting those that are attractively priced and undervalued.

Growth Score

Growth-oriented investors focus on companies with strong financials and promising future prospects. The Growth Score assesses both historical and projected earnings, sales, and cash flow to pinpoint stocks positioned for long-term expansion.

Momentum Score

Momentum investing is based on the principle that trends tend to persist. This score looks at factors like recent price movements and changes in earnings estimates to identify stocks experiencing positive momentum, signaling potentially favorable entry points.

VGM Score

For those who want a comprehensive approach, the VGM Score combines value, growth, and momentum metrics into a single rating. This score is especially useful when used alongside the Zacks Rank, helping investors narrow down stocks that excel across all three areas.

How Style Scores Enhance the Zacks Rank

The Zacks Rank is a proprietary system that leverages changes in earnings estimates to help investors build winning portfolios. Since 1988, stocks rated #1 (Strong Buy) have delivered an average annual return of +23.86%, more than twice the S&P 500's performance. However, with over 800 stocks rated #1 or #2 (Buy) at any time, choosing the right ones can be daunting.

This is where the Style Scores become invaluable.

To maximize your chances of strong returns, focus on stocks that have a Zacks Rank of #1 or #2 and also receive an A or B in the Style Scores. Even if you consider stocks with a #3 (Hold) rating, prioritizing those with high Style Scores can increase your upside potential.

Because the Style Scores are designed to work in tandem with the Zacks Rank, it's crucial to consider the direction of earnings estimate revisions when selecting stocks.

For example, a stock rated #4 (Sell) or #5 (Strong Sell), even with high Style Scores, is likely facing declining earnings expectations and may see its share price fall.

In summary, holding more stocks with a #1 or #2 Rank and top Style Scores can significantly improve your investment outcomes.

Featured Stock: PENN Entertainment PENN-3.50% (PENN)

PENN Entertainment, originally established as PNRC Corp. in Pennsylvania in 1982, adopted its current name in 1994 upon becoming a publicly traded company. Today, PENN is a prominent operator and owner of gaming and racing venues, including video gaming terminal operations, with a strong emphasis on slot machine entertainment. The company boasts a broad geographic presence and an extensive portfolio.

Currently, PENN holds a #3 (Hold) Zacks Rank and has achieved an A rating for its VGM Score.

The company is also appealing to growth investors, earning an A in the Growth Style Score category and projecting a remarkable 118.5% increase in earnings for the current fiscal year.

Looking ahead to fiscal 2026, two analysts have raised their earnings forecasts in the past two months, pushing the Zacks Consensus Estimate up by $0.18 to $1.08 per share. PENN has also delivered an average earnings surprise of +93.6%.

With its strong Zacks Rank and outstanding Growth and VGM Scores, PENN stands out as a stock worth considering for your portfolio.

Top Analyst Reveals "Single Best Pick to Double"

Out of thousands of stocks, five Zacks experts have each selected their top choice expected to soar by 100% or more in the coming months. From these, Director of Research Sheraz Mian has identified one with the greatest potential for explosive growth.

This company, which targets millennial and Gen Z consumers, generated nearly $1 billion in revenue last quarter. A recent dip in its share price could present an excellent buying opportunity. While not every top pick achieves such results, this stock could outperform previous Zacks selections like Nano-X Imaging, which surged over 129% in just over nine months.