Baron Funds: “PENN has a Strong Balance Sheet with Earnings Growth Accelerating Over Time”

Baron Growth Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2021, the Baron Growth Fund returned 3.63% (institutional shares). In comparison, the benchmark S&P 500 Index was up 0.58%, while the Russell 2000 Growth Index was down 5.65%. You should check out Baron Growth Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2022.

Baron Growth Fund, in its Q3 2021 investor letter, mentioned Penn National Gaming, Inc. (NASDAQ: PENN) and discussed its stance on the firm. Penn National Gaming, Inc. is a Wyomissing, Pennsylvania-based casino company with an $8.2 billion market capitalization. PENN delivered a -43.31% return since the beginning of the year, while its 12-month returns are down by -34.21%. The stock closed at $48.96 per share on December 09, 2021.

Here is what Baron Growth Fund has to say about Penn National Gaming, Inc.  in its Q3 2021 investor letter:

“Shares of regional casino company Penn National Gaming, Inc. declined as investors fretted about lower market share in online sports betting, and more aggressive marketing spend from competitors in their facility-based businesses. We believe Penn’s recently announced acquisition of Score Media and Gaming, combined with its Barstool acquisition last year, should help drive customers to its betting App, enhancing its market share. Penn has a strong balance sheet with earnings growth accelerating over time.”

Based on our calculations, Penn National Gaming, Inc. (NASDAQ: PENN)) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. PENN was in 38 hedge fund portfolios at the end of the third quarter of 2021, compared to 40 funds in the previous quarter. Penn National Gaming, Inc. (NASDAQ: PENN) delivered a -38.65% return in the past 3 months.

Earlier this year, we also published an article about PENN landing in the Top 10 Stock Picks of Mark Moore’s ThornTree Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.