#7 - Churchill Downs (NASDAQ:CHDN)
The last stock on our list is Churchill Downs (NASDAQ:CHDN). The company is best known for the iconic race track that hosts the Kentucky Derby. The good news for fans of horse racing is that the Derby should be back at its normal date. And at this time, it may be able to have a small amount of fans.
But CHDN stock is worth your consideration for other reasons. Churchill Downs operates resorts and casinos throughout the United States. The company also occupies a space in the online sports betting world. Critics will cite that the company makes a lot of its sports betting revenue from horse racing. But we’re still in the early days of this market. And even if Churchill Downs becomes a niche player, there may still be a great opportunity.
CHDN stock is up 28% in 2021, but investors will want to exercise some level of caution. The company is in the middle of executing a capital expenditure plan that is likely to cut into its margins for the year.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort.
Read More - Current Price
- $132.23
- Consensus Rating
- Buy
- Ratings Breakdown
- 8 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $160.88 (21.7% Upside)
It’s almost impossible to underestimate the impact of the opportunity that sports betting represents. Last year, 94% of the over $900 million bet through New Jersey sportsbooks was done online. New York, which legalized sports betting via casinos in 2018, has a ballot initiative to legalize mobile gaming. If passed, the state would likely be home to the largest sportsbook in the country with over $1 billion in taxable revenue. Those are just two examples.
Our country has embraced the gambling culture in a way that many would not have thought likely, or even possible, just a couple of generations ago. This is a multi-billion industry that is still early in its lifecycle.
The stocks in this presentation are among the first movers and will likely to be among the key names to watch as the industry consolidates and matures. The stock market can be as volatile and unpredictable as March Madness, but an investment in any of these stocks is likely to be worth the thrill.
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