Churchill Downs "CHDN reported a profit for its 1Q, a period which has historically produced a net loss due to the seasonality of live racing," Hilliard Lyons analysts wrote in a May 8 report. "However, an effective diversification strategy begun by management several years ago has lessened the weighted contribution of the racing segment by adding profitable (and growing) income streams from gaming and online wagering. We view the generation of a 1Q profit as a landmark achievement for CHDN and not a one-time anomaly." Shares of Churchill Downs hit a 52-week high of $63.18 on Wednesday. The stock's 52-week low of $36.67 was set on Sept. 30. Churchill Downs' forward P/E is 18.18; the average for gambling companies is 13.96. For comparison, International Game Technology ( IGT) has a lower forward P/E of 12.17. All five of the analysts who cover Churchill Downs rated it buy. The stock has risen 20.3% year to date.