Senate Betting Bill Hits DraftKings Hard: DKNG Falls 6% While Penn Entertainment Holds Its Ground - 24/7 Wall St. S&P 5006,617.90 +0.12% Dow Jones46,566.40 +0.18% Nasdaq 10024,266.40 +0.12% Russell 20002,538.97 +0.07% FTSE 10010,135.80 +1.19% Nikkei 22554,005.50 +1.18% Stock Market Live March 25, 2026: S&P 500 (SPY) Roller Coaster Ride Continues Investing Senate Betting Bill Hits DraftKings Hard: DKNG Falls 6% While Penn Entertainment Holds Its Ground By David MoadelPublished Mar 25, 1:25PM EDT Quick Read D ...

Quick Read DraftKings (DKNG) reported Q4 2025 revenue of $1.99B, up 42.8% year-over-year, with adjusted EPS of $0.36 beating consensus by 100%, and achieved its first full-year GAAP net income while expanding into DraftKings Predictions. Penn Entertainment (PENN) posted 73% year-over-year online sportsbook growth and 40% iCasino growth in Q4 2025, with its Interactive segment achieving positive adjusted EBITDA in December following the strategic reset and ESPN partnership termination. A broad market ...

PENN Entertainment Sets June 24 as Grand Opening Date for New Hollywood Casino Aurora in Illinois Mar 19, 2026 10:00 AM Eastern Daylight Time PENN Entertainment Sets June 24 as Grand Opening Date for New Hollywood Casino Aurora in Illinois Share Additional details related to the grand opening of the new casino will be provided in advance of June 24. The Company expects to work with the Illinois Gaming Board on the transfer of operations from the existing Hollywood Casino Aurora, which is located on the Fox ...

Core Viewpoint - Invesco Small Cap Value Fund's Q4 2025 performance exceeded its benchmark, with a focus on economically sensitive stocks and a belief in the long-term potential of small-cap value equities [1] Group 1: Fund Performance - The Invesco Small Cap Value Fund achieved a quarterly return of 6.79%, outperforming the Russell 2000 Value Index's return of 3.26% [1] - For the full year, the fund generated a return of 17.64%, compared to 12.59% for the Russell 2000 Value Index [1] - Stock selection in the Information Technology sector contributed approximately 2.90% to the fund's relative performance, while health care and financials detracted [1] Group 2: Investment Strategy - Management maintained a greater exposure to economically sensitive stocks, indicating a strategic focus on sectors likely to benefit from economic growth [1] - The Russell 2000 Value Index is noted to trade at a historical P/E discount relative to the S&P 500, suggesting attractive long-term capital appreciation potential for small-cap value equities [1] Group 3: Company Highlight - Penn Entertainment, Inc. - Penn Entertainment, Inc. operates gaming and entertainment properties, including casinos and online sports betting platforms across the U.S. [2] - The stock of Penn Entertainment, Inc. had a one-month return of 25.67%, with shares trading between $11.65 and $20.61 over the last 52 weeks [2] - As of March 04, 2026, Penn Entertainment, Inc. closed at approximately $15.27 per share, with a market capitalization of about $2.28 billion [2] Group 4: Challenges Faced by Penn Entertainment, Inc. - Shares of Penn Entertainment, Inc. declined after third-quarter earnings missed expectations, and the announcement of ending its partnership with ESPN negatively impacted investor sentiment [3] - The company was not included in the list of the 40 Most Popular Stocks Among Hedge Funds heading into 2026, with 43 hedge fund portfolios holding the stock at the end of Q4, down from 44 in the previous quarter [4]

Upgrades - RBC Capital upgraded Builders FirstSource (BLDR) to Outperform from Sector Perform with an unchanged price target of $119, citing an attractive risk/reward due to the stock's valuation pullback [2] - Goldman Sachs upgraded AIG (AIG) to Buy from Neutral with a price target of $90, up from $83, indicating a 16% total return potential and highlighting peer-high earnings growth and improving return on equity [3] - Evercore ISI upgraded Southern Company (SO) to Outperform from In Line with a price target of $111, up from $103, expressing a bullish outlook and belief that shares are poised for all-time highs [4] - Benchmark upgraded Penn Entertainment (PENN) to Buy from Hold with a price target of $21, noting that reaching break-even and meaningful free cash flow expansion can significantly improve the company's profile [4] - Scotiabank upgraded MongoDB (MDB) to Outperform from Sector Perform with a price target of $310, up from $275, suggesting that the current reset level presents an attractive buying opportunity [5] Downgrades - Arete downgraded Meta Platforms (META) to Neutral from Buy with a price target of $676, down from $732, due to concerns over lagging AI monetization and increasing investments leading to margin declines [6] - Rothschild & Co Redburn downgraded American Airlines (AAL) to Neutral from Buy with a price target of $12.50, citing accelerating domestic airline capacity growth and disruptive pressures from the Iran conflict [6] - Wedbush downgraded StubHub (STUB) to Neutral from Outperform with a price target of $10, down from $18, following a Q4 report that raised concerns about the value of StubHub's direct issuance business [6] - Craig-Hallum downgraded Grocery Outlet (GO) to Hold from Buy with a price target of $7.50, down from $21, after disappointing Q4 results and lower-than-expected 2026 guidance [6] - Goldman Sachs downgraded Allstate (ALL) to Neutral from Buy with a price target of $231, down from $238, expressing concerns about market positioning and exposure to autonomous vehicles [6]

Company Insights - Arrow Electronics is one of the world's largest distributors of electronic components and enterprise computing products, with a projected 3-5 year EPS growth rate of 15.2% and a Zacks Rank 1 (Strong Buy) [6][8] - Arrow's recent partnerships, including collaboration with .lumen for AI-powered assistive technology, highlight its innovation leadership and are expected to bolster future growth [7] - Gold.com operates as a fully integrated alternative assets platform, with a stock price that has surged 83% over the past three months and an expected earnings growth rate of 63.1% for the current year, also holding a Zacks Rank 1 [9][10] - Cross Country Healthcare provides talent management and consultative services for healthcare clients, benefiting from strong relationships and momentum in home care and physician staffing, currently holding a Zacks Rank 3 (Hold) [11][12] - AMN Healthcare Services has evolved into a strategic total talent solutions partner, with a unique MSP that streamlines workforce planning and improves patient care, also holding a Zacks Rank 3 [13][14] - PENN Entertainment is recognized for consistent strategy execution and strong brand recognition, with earnings surpassing the Zacks Consensus Estimate in three of the last four quarters, currently holding a Zacks Rank 3 [15] Market Trends - The technology sector has experienced a sharp downturn due to investor concerns regarding the sustainability of the AI trade and elevated valuations of AI stocks, alongside sell-offs in cryptocurrencies like Bitcoin [2] - Despite market volatility, investors are encouraged to consider broker-favored stocks, indicating potential investment opportunities in the current environment [3]

Company Overview - PENN Entertainment was incorporated in Pennsylvania in 1982 and became publicly traded in 1994, focusing on gaming and racing facilities with a strong emphasis on slot machine entertainment [11] - The company operates across multiple jurisdictions and has a diverse portfolio of gaming facilities [11] Zacks Rank and Style Scores - PENN is currently rated 3 (Hold) on the Zacks Rank, indicating a neutral outlook [12] - The company has a VGM Score of A, suggesting it has attractive value, growth, and momentum characteristics [12] - PENN's Growth Style Score is also A, forecasting a significant year-over-year earnings growth of 118.5% for the current fiscal year [12] Earnings Estimates and Performance - In the last 60 days, two analysts have revised their earnings estimates upwards, with the Zacks Consensus Estimate increasing by $0.18 to $1.08 per share [12] - PENN has demonstrated an average earnings surprise of +93.6%, indicating strong performance relative to expectations [12] Investment Consideration - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PENN is recommended as a potential investment opportunity for growth investors [13]

Market Overview - The U.S. stock market is experiencing significant downward pressure due to a combination of negative catalysts, including a hot wholesale inflation report and escalating geopolitical tensions in the Middle East [1] - All three major indexes are trading deep in negative territory, with the Dow Jones Industrial Average (DJI) dropping approximately 600 points, or 1.21%, and the S&P 500 (SPX) retreating by nearly 1% [2] Economic Data - The January Producer Price Index (PPI) report revealed a month-over-month increase of 0.5%, exceeding the 0.3% consensus estimate, while the Core PPI rose 0.8%, leading to a year-over-year acceleration to 3.6%, the highest in nearly a year [4] - This data dampens hopes for a near-term interest rate cut, prompting investors to recalibrate expectations for the Federal Reserve's next policy meeting [5] Corporate Developments - Block (SQ) shares surged nearly 20% following CEO Jack Dorsey's announcement of a 40% workforce reduction to pivot towards becoming an "AI-native" company [7] - Salesforce (CRM) reported fourth-quarter earnings that beat analyst estimates, resulting in a 4% increase in stock price, while Intuit (INTU) saw a 3.6% decline after issuing a disappointing profit forecast [8] - The "Magnificent Seven" and other AI-related stocks are under pressure, with Nvidia (NVDA) down 1.6% amid concerns of an overextended AI-driven rally [9] - Netflix (NFLX) rose 7% after confirming it would not increase its bid for Warner Bros. Discovery, while PENN Entertainment (PENN) rallied 16.8% following a surprise earnings beat [10] Geopolitical Impact - Increased U.S. military movement near Iran has raised concerns of potential conflict, contributing to higher oil prices, with West Texas Intermediate (WTI) crude climbing toward $66 a barrel, adding inflationary pressure to the markets [12]

Core Viewpoint - PENN Entertainment Inc. has shown significant stock performance with a 16.75% increase, driven by a positive growth outlook despite previous financial losses [1][7]. Financial Performance - In 2025, PENN Entertainment widened its net loss by 170% to $845.3 million from $313.3 million in 2024, while total revenues increased by 5.8% to $6.96 billion from $6.58 billion [2]. - The company reported an operating loss of $673.6 million, a reversal from an operating income of $72.5 million the previous year [2]. - In Q4, PENN Entertainment's net loss decreased by 45% to $73.4 million compared to $133.8 million in the same period the previous year, with total revenues rising by 8.2% to $1.8 billion from $1.669 billion [3]. Growth Outlook - The company aims for a year-on-year adjusted EBITDAR growth of 20% and plans to enhance its retail segment through new openings and projects [3][4]. - PENN Entertainment's President and CEO, Jay Snowden, expressed optimism about achieving break-even adjusted EBITDA in the Interactive segment, which is expected to contribute to cash flow growth in 2026 [4].

Core Insights - The company reported improving profitability trends across its retail casino portfolio and interactive segment during Q4 2025, with expectations for significant free cash flow generation and deleveraging in 2026 [4][19] Financial Performance - Adjusted EBITDAR grew year-over-year, despite a $7 million impact from poor weather in December, particularly affecting the Northeast segment [3] - The interactive segment generated revenue of $398.7 million in Q4, with a year-over-year improvement in Adjusted EBITDA of $70 million, driven by record gaming revenue and improved sportsbook operations [11][12] Growth and Development - The company anticipates total CapEx of $445 million for 2026, with retail net revenue projected between $5.7 billion and $5.85 billion, and interactive revenue around $1.6 billion [5][14] - New developments, including the Hollywood Columbus hotel tower and the Hollywood Casino Aurora, are expected to generate over 15% cash-on-cash returns [8][9] Interactive Segment Strategy - The rebranding of the U.S. online sportsbook to theScore Bet has led to positive Adjusted EBITDA, with expectations for the interactive segment to reach breakeven in 2026, representing a $268 million year-over-year improvement [10][12] - The company is focusing on iCasino-led hybrid states and Canada for growth, rather than competing aggressively in online sports betting-only states [13] Capital Allocation and Financial Health - The company plans to generate over $3 per share of free cash flow in 2026 while reducing lease-adjusted net leverage by more than one turn [19] - Total liquidity at the end of the quarter was $1.1 billion, including $687 million in cash and cash equivalents [18] Market and Regulatory Environment - The company is closely monitoring the evolving landscape for prediction markets and is focused on maintaining compliance with regulatory requirements [20] - Potential new market expansion in Alberta is being considered, with estimated marketing investments of CAD 15 million to CAD 20 million [22]