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 $9.6 million.
  • CHDN has traded 15.9551999999999996049382389173842966556549072265625 options contracts today.
  • CHDN is making at least a new 3-day high.
  • CHDN has a PE ratio of 58.
  • CHDN is mentioned 1.27 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.

TST Recommends

'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.

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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 0.7%. 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 70,100 shares per day over the past 30 days. Churchill Downs has a market cap of $2.5 billion and is part of the services sector and leisure industry. The stock has a beta of 0.70 and a short float of 6.4% with 13.78 days to cover. Shares are up 46.9% year-to-date as of the close of trading on Tuesday.

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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, good cash flow from operations, expanding profit margins 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:

  • The revenue growth greatly exceeded the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 34.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 55.61% to $104.50 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 -59.32%.
  • 42.90% is the gross profit margin for CHURCHILL DOWNS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.45% trails the industry average.
  • Compared to its closing price of one year ago, CHDN's share price has jumped by 43.11%, exceeding the performance of the broader market during that same time frame. 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.
  • CHURCHILL DOWNS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CHURCHILL DOWNS INC reported lower earnings of $2.56 versus $3.07 in the prior year. This year, the market expects an improvement in earnings ($4.10 versus $2.56).

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