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PENN Stock Price Soars 13% In After Hours Ahead Of Q2 Earnings Call

PENN (NASDAQ: PENN) stock price seems to be in control of the bulls, as the candle for the after-hours is depicting strong buying pressure. The price jumped by 13% in the after-hours due to the sports betting deal with ESPN. The stock for the entertainment company closed at $24.8 on Tuesday.

A strong bullish pressure on PENN stock ahead of the earnings report suggests that investors are optimistic about the company’s performance. However, investors should also be aware of the upcoming CPI report, which could significantly impact the dollar strength (DXY) index and, by extension, PENN’s stock price.

PENN Entertainment Signs A $2 Billion Deal With ESPN

The recent surge in the PENN Entertainment stock price can be attributed to a $2 billion deal with ESPN. The deal will create a branded sportsbook called ESPN BET, which will operate in 16 states where gambling is legal. PENN Entertainment also announced its separation from Barstool Sports, as it sold its 36% stake in the company, which it acquired in 2019.

Investors are eagerly awaiting PENN’s second-quarter earnings report, as the share price will be closely tied to the results. A strong report could send the stock price soaring, while a weak report could push the stock price to the downside target mentioned below.

PENN Stock Price Forecast

The chart for NASDAQ: PENN shows that the price has been trading in a falling wedge since November 2022. As mentioned earlier, the results of the earning reports will affect the entertainment company’s share price once the market opens today.

If the earnings report comes out as positive, the bulls might take the price to the 200 MA level, which is $29.5. However, if the earnings remain unsatisfactory, the bears could overpower the bulls to drag the price down to the demand zone of $23, as shown in the chart below.

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PENN stock price chart