It’s always a good idea to track analyst upgrades.

Often, upgrades and price revisions are influenced by 1) company fundamentals, such as financial health, future growth, and even meetings with management; 2) industry and market trends, including specific market conditions and economics; 3) earnings and financial data, including earnings reports that came in better than expected, or competitive analysis of a competitor, and guidance; 4) or, they may be piling into a stock based on other firms.

But never rely solely on upgrades to buy. Instead, pay attention to what’s happening technically and fundamentally. The last thing you want to do is buy into a recently upgraded, but overvalued stock. That’s a great way to lose money.

Look at Penn Entertainment (PENN), for example.

Oversold at double bottom support, and over-extended on RSI, MACD, and Williams’ %R, PENN is slowly starting to pivot higher.

Helping, Stifel upgraded Penn Entertainment to a buy rating, with a price target of $21 a share. This follows its termination of its sports betting agreement with ESPN earlier than planned.

 “When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space,” said Jay Snowden, CEO and President of PENN Entertainment, in a company press release.

“Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration. We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator,” he added.

Sincerely,

Ian Cooper

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