Gaming or gambling stocks have had a tough time in recent times due to the coronavirus pandemic and it is not really a surprise. However, there are still some interesting companies that could be tracked by investors and one of those is Penn National Gaming, Inc (NASDAQ:PENN). The company operates as many as 50,000 gaming machines and 1300 table games.
The stock had hit its bottom back in March but it has recovered to some extent since then. If investors have a longer term outlook and choose to ignore the short term fluctuations, the Penn National Gaming stock could well prove to be a winner. Here is a closer look at the company.
While Penn National might be looked upon as one of the bigger players in the slot machine space, it is necessary to keep in mind that there is more to the company. The company also offers online gaming services through Penn Interactive Ventures and at this point in time, it boasts of as many as 5 million customers. It offers its online gaming services on desktop and also on mobile apps. Cumulatively, its online gaming brands offer hundreds of the most popular slot games and customers can also place bets on horse racing.
On top of that, the company has also made a move into online sports gaming by picking up a 36% stake in Barstool Sports. Penn National paid $163 million for the stake and is going to be the exclusive gaming partner for the next 40 years. It can now leverage the existing user base of Barstool Sports to grow its gaming properties further.
The worldwide lockdowns could also see more and more people moving into online gaming in a big way. Hence, Penn National could actually grow its customer base during this time. The Penn National stock could well prove to be one of the biggest bargains from the gaming space.