Strong And Under The Radar: Churchill Downs (CHDN)

Trade-Ideas LLC identified Churchill Downs (CHDN) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Churchill Downs

(

CHDN

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Churchill Downs as such a stock due to the following factors:

  • CHDN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.3 million.
  • CHDN has traded 5.791000000000000369482222595252096652984619140625 options contracts today.
  • CHDN is making at least a new 3-day high.
  • CHDN has a PE ratio of 58.
  • CHDN is mentioned 0.94 times per day on StockTwits.
  • CHDN has not yet been mentioned on StockTwits today.
  • CHDN is currently in the upper 20% of its 1-year range.
  • CHDN is in the upper 35% of its 20-day range.
  • CHDN is in the upper 45% of its 5-day range.
  • CHDN is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CHDN with the Ticky from Trade-Ideas. See the FREE profile for CHDN NOW at Trade-Ideas

More details on CHDN:

Churchill Downs Incorporated provides pari-mutuel horseracing, online account wagering on horseracing, and casino gaming services. It operates in five segments: Racing, Casinos, TwinSpires, Big Fish Games, Inc., and Other Investments. The stock currently has a dividend yield of 0.8%. CHDN has a PE ratio of 58. Currently there are 4 analysts that rate Churchill Downs a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Churchill Downs has been 70,300 shares per day over the past 30 days. Churchill Downs has a market cap of $2.6 billion and is part of the services sector and leisure industry. The stock has a beta of 0.78 and a short float of 6.2% with 13.37 days to cover. Shares are up 51.5% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Churchill Downs as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • CHDN's very impressive revenue growth greatly exceeded the industry average of 1.4%. Since the same quarter one year prior, revenues leaped by 61.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Hotels, Restaurants & Leisure industry average. The net income increased by 19.0% when compared to the same quarter one year prior, going from $3.53 million to $4.20 million.
  • Net operating cash flow has significantly increased by 699.17% to $29.02 million when compared to the same quarter last year. In addition, CHURCHILL DOWNS INC has also vastly surpassed the industry average cash flow growth rate of 2.77%.
  • The debt-to-equity ratio is somewhat low, currently at 0.77, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.23 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 40.74% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...