As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the casino operator industry, including PENN Entertainment (NASDAQ:PENN) and its peers.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Red Rock Resorts (NASDAQ:RRR) and its peers.
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Monarch (NASDAQ:MCRI) and the rest of the casino operator stocks fared in Q1.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran.
Scottie Scheffler has made a ton of money for himself and sports bettors in recent years. Some fans and bettors aren't happy when he loses and want refunds.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) missed Wall Street’s revenue expectations in Q1 CY2025 as sales rose 4.1% year on year to $1.67 billion. Its non-GAAP EPS of $0.25 per share was 92.3% below analysts’ consensus estimates.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
Consumer discretionary businesses are levered to the highs and lows of economic cycles. Unfortunately, the industry’s recent performance suggests demand may be fading as
discretionary stocks have pulled back by 13.8% over the past six months. This drawdown was significantly worse than the S&P 500’s 1.9% decline.
A number of stocks fell in the afternoon session after the major indices fell further in the afternoon (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit.
PENN Entertainment Inc (PENN) and Shake Shack Inc. (SHAK) partner to bring popular burger chain to 10 casino properties, aiming to enhance guest experience and expand geographic footprint. First two locations set to open in 2026, with more to follow. Partnership reflects trend of integrating culinary brands into casinos. Related ETFs: PEJ, EATZ. PENN shares down 2.11% and SHAK down 1.02%.
