S&P 500’s Biggest Stock Winner Since March 2020 Bottom Looks Tapped Out
By Todd Gordon
March 23, 2021
The S&P 500 on Tuesday marked the one-year anniversary since its March 2020 bottom, and one of its stocks has outperformed all others.
Casino owner Penn National Gaming, beaten down early in the Covid pandemic from shutdowns and national sports league disruptions, has rocketed nearly 1,400% off its March 23 low.
Mark Tepper, president of Strategic Wealth Partners, holds Penn National, but worries its upside may be limited after a record run. The stock hit an all-time high last week.
“I love the company and I own it. The run has been incredible for Penn National. A year ago, it was $4, now it’s like $110. Love the company, love the stock, love Dave Portnoy. The guy’s a marketing genius, he’s really carried the stock over the last year, but I think he’s done about as much as he can. For now I think gains are going to be tougher to come by in the future,” Tepper told CNBC’s “Trading Nation” on Tuesday.
Penn took a stake in media company Barstool Sports, founded by Portnoy, last year, a decision that analysts applauded. Stifel, one of the bullish firms, upped its price target on Penn in September and cited “Portnoy momentum.” Penn currently has an average $114.15 price target – it closed Tuesday at $111.82.
“Part of the allure of this company is online sports gambling which just completely blew up throughout the pandemic, but I can get sportsbook exposure through MGM or Caesars and when I look at the valuations of all three companies relative to the quality of their properties, I put Penn in third place,” Tepper said.
Another high flyer in the past 12 months, Tesla, could have more room to run, according to TradingAnalysis.com founder Todd Gordon. That stock is up more than 700% from its March 23 low.
“The chart shows the uptrend intact,” Gordon said during the same interview. “There might be a little check down below $500 support, but there’s not resistance until about $2,000.”
Gordon sees a number of possible catalysts including the company’s expansion into insurance and possible synergy between Tesla and CEO Elon Musk’s private space exploration venture SpaceX.
Disclosure: Strategic Wealth Partners holds PENN. Gordon holds TSLA.
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Founder and Lead Analyst of Trading Analysis
Todd has been trading as a career for the last 20+ years. His goal is to not only provide insightful analysis, but to teach people how to think and grow as professional traders. Todd is a practitioner of Elliott Wave Theory and he uses it to gain an edge in the highly competitive trading arena. In addition to trading professionally, Todd has worked as an analyst and researcher at two different hedge funds. Click Here To Learn More about Todd Gordon