7 Stocks on Jim Cramer’s Radar

4. PENN Entertainment, Inc. (NASDAQ:PENN)

Number of Hedge Fund Holders: 37

PENN Entertainment, Inc. (NASDAQ:PENN) offers integrated entertainment, sports content, and casino gaming, and it provides online sports betting and iCasino services under various brands. Here’s what Mad Money’s host had to say about it:

“No, I don’t like Penn Entertainment. They, yeah, you know, a new broom needs to sweep clean there. Let me tell you.”

On January 24, Barclays increased its price target on PENN Entertainment (NASDAQ:PENN) to $23 from $22 and maintained an Overweight rating on the stock as part of a Q4 preview for the gaming industry. While the analyst expects Vegas, Macau, and digital sectors to potentially underperform, this appears to be already factored in, and “beaten-down regionals” may surpass low expectations, offering hope for modest growth. The firm expects positive Q4 gaming reports for regional operators.

Additionally, as of the third quarter of 2024, PENN Entertainment (NASDAQ:PENN) reported a total liquidity of $1.8 billion, which includes $834 million in cash and cash equivalents. The company has no debt maturities until 2026 when its $330 million convertible notes are due.

Looking ahead, the company expects to continue generating positive free cash flow in 2025 and beyond, with the Interactive segment anticipated to make a significant contribution to adjusted EBITA by 2026. Additionally, four retail growth projects are slated for completion by the first half of 2026, which should further support the company’s financial performance.