PENN Entertainment (PENN) Slides on Q3 Miss and ESPN Partnership Exit

Invesco Ltd‘s “Small Cap Value Fund” released its Q4 2025 investor letter. A copy of the letter can be downloaded here. The Invesco Small Cap Value Fund reported strong results for Q4 2025, outperforming its Russell 2000 Value Index benchmark as Class A shares delivered a quarterly return of 6.79%, compared to the benchmark’s 3.26%, with stock selection in the Information Technology sector contributing approximately 2.90% to relative performance while health care and financials detracted. For the full year, the fund generated a 17.64% return versus 12.59% for the Russell 2000 Value Index. Management maintained greater exposure to economically sensitive stocks and emphasized that small-cap value equities remain attractively priced, noting that the Russell 2000 Value Index continues to trade at a historical P/E discount relative to the S&P 500, indicating compelling long-term capital appreciation potential. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Invesco Small Cap Value Fund highlighted stocks like Penn Entertainment, Inc. (NASDAQ:PENN). Penn Entertainment, Inc. (NASDAQ:PENN) operates gaming and entertainment properties, including casinos and online sports betting platforms, across the United States. The one-month return of Penn Entertainment, Inc. (NASDAQ:PENN) was 25.67% while its shares traded between $11.65 and $20.61 over the last 52 weeks. On March 04, 2026, Penn Entertainment, Inc. (NASDAQ:PENN) stock closed at approximately $15.27 per share, with a market capitalization of about $2.28 billion.

Invesco Small Cap Value Fund stated the following regarding Penn Entertainment, Inc. (NASDAQ:PENN) in its Q4 2025 investor letter:

Penn Entertainment, Inc. (NASDAQ:PENN): The company operates physical casinos in the US, along with a growing digital gaming and sports-betting platform. Shares declined after third quarter earnings missed expectations. The company’s announcement ending its partnership with ESPN also seemed to dampen investor sentiment.

Penn Entertainment, Inc. (NASDAQ:PENN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 43 hedge fund portfolios held Penn Entertainment, Inc. (NASDAQ:PENN) at the end of the fourth quarter, which was 44 in the previous quarter. While we acknowledge the risk and potential of Penn Entertainment, Inc. (NASDAQ:PENN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Penn Entertainment, Inc. (NASDAQ:PENN) and shared the company's Q4 2025 earnings call transcript. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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