Churchill Downs (CHDN - Free Report) closed the most recent trading day at $122.68, moving -1.6% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Prior to today's trading, shares of the racetrack operator and gambling company had gained 5.26% over the past month. This has outpaced the Consumer Discretionary sector's gain of 3.04% and the S&P 500's gain of 2.25% in that time.
Wall Street will be looking for positivity from CHDN as it approaches its next earnings report date. On that day, CHDN is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 24.53%. Our most recent consensus estimate is calling for quarterly revenue of $301.28 million, up 36.14% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.29 per share and revenue of $1.30 billion, which would represent changes of +17.86% and +29.32%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CHDN. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CHDN is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, CHDN is holding a Forward P/E ratio of 29.06. This valuation marks a premium compared to its industry's average Forward P/E of 20.68.
It is also worth noting that CHDN currently has a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Gaming was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.