PENN

PENN Entertainment has demonstrated a strong streak of beating earnings estimates, with an average surprise of 72.86% over the last two quarters. The stock currently has a positive Earnings ESP of +2.62% combined with a Zacks Rank #3 (Hold), suggesting another earnings beat is likely in the upcoming November 5, 2026 report. Stocks with this combination historically beat consensus estimates nearly 70% of the time.

Zacks Premium offers investment tools including the Zacks Rank and Style Scores to help investors identify high-performing stocks. The Zacks Rank #1 (Strong Buy) stocks have averaged +23.82% annual returns since 1988, outperforming the S&P 500. Style Scores rate stocks on value, growth, and momentum characteristics to help narrow down the best investment opportunities.

Zacks Premium offers investment research tools including the Zacks Rank and Style Scores to help investors identify stocks with strong performance potential. The Zacks Rank uses earnings estimate revisions to rate stocks, with #1 (Strong Buy) stocks averaging +23.86% annual returns since 1988.

Style Scores rate stocks on value, growth, and momentum across A-F grades. PENN Entertainment is highlighted as a #1 Strong Buy with an A VGM Score and A Growth Score, forecasting 117.7% year-over-year earnings growth.

A comparison of two gaming sector stocks reveals that PENN Entertainment offers better value for investors compared to Take-Two Interactive. PENN has a stronger Zacks Rank (#1 Strong Buy vs #3 Hold), lower valuation multiples (P/E of 14.95 vs 29.66, PEG of 0.46 vs 1.08), and a superior Value grade (A vs F), making it the more attractive option for value-focused investors.

DraftKings is showing early signs of recovery in its iGaming business with improved revenue growth, stabilized market share, and successful product launches like Lightning Link and Flex Spins. However, the company faces intense competition from Flutter Entertainment and PENN Entertainment. DKNG stock is trading at a discount with a Zacks Rank #4 (Sell) rating, though 2026 earnings are projected to surge 36.4%.

DraftKings is expanding its addressable market through its Super App strategy, leveraging its Predictions offering to reach customers in states where Sportsbook is unavailable. Over 600,000 customers have adopted Predictions with lower acquisition costs than Sportsbook. However, DKNG stock has declined 26% in three months and holds a Zacks Rank #4 (Sell) rating, with consensus EPS estimates declining over the past 60 days despite projected 36.4% earnings growth in 2026.

DraftKings is shifting more Predictions trading volume to its DKeX exchange to retain fees from external providers. With Futures Commission Merchant approval obtained in July 2026, the company aims to improve profitability through in-house operations.

While Predictions may generate lower revenue per customer than Sportsbook, higher margins could deliver comparable gross profit. However, DKNG stock has declined 26.6% in three months and carries a Zacks Rank #4 (Sell) rating, with consensus EPS estimates declining over the past 60 days.