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Churchill Downs Inc. (CHDN - Free Report) is trading like a winner in the up market, recently hitting a new 52-week high after posting Q1 results that handily beat expectations. With estimates on the rise and a bullish growth projection, this Zacks #1 rank stock is racing with momentum.

Company Description

Churchill Downs, Inc. owns horse-racing tracks and gaming operations in the United States. The company was founded in 1928 and has a market cap of $730 million.

Churchill Downs has seen big gains over the last year, but shares got an extra boost into a new multi-year high on May 9 when the company reported Q1 results that came in ahead of expectations.

First-Quarter Results

Revenue for the period was up 54% from last year to $132 million. And although earnings were negative, its loss of 20 cents was well ahead of the Zacks Consensus Estimate calling for a loss of 32 cents.

The big jump in revenue was driven by the company's Gaming and Online segments, where its recent acquisition of and Harlow's Casino Resort and Hotel provided a nice boost.

Financial Profile

Churchill has also seen its cash position grow over the last year, with cash and equivalents up $34 million to $82 million against a total debt load of $240 million.


We saw some pretty bullish movement in estimates off the upbeat quarter, with the current year jumping 18% to $2.25. The next-year estimate is pegged at $2.53, a solid 12% growth projection.


But in spite of the recent gains, CHDN still looks reasonably valued, trading with a forward P/E of 20X, a discount to the industry average of 21X.

12-Month Chart

On the chart, shares jumped into a new multi-year high on the good quarter. Look for support from the longer-term trend on any weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for He is also the Editor in charge of the Zacks Momentum Trader Service.

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