CHDN Should I Buy
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Churchill Downs Inc (CHDN) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company demonstrates strong fundamentals, positive growth prospects, and a solid track record of shareholder returns, making it a suitable choice for long-term investment.
The MACD is positively expanding, indicating bullish momentum. RSI is at 78.412, suggesting the stock is nearing overbought territory but not yet signaling a reversal. The stock price is trading above the pivot level (90.593) and close to the R1 resistance (94.036), showing strength. Moving averages are converging, which could indicate a potential breakout.
Record $473.9 million handle for the Kentucky Derby in 2024, with expectations for future growth.
Strong capital management with $2.1 billion in share repurchases and 15 consecutive years of dividend increases.
Diversified revenue streams and customer loyalty across 10 gaming venues in nine states.
Hedge funds are selling, with a 115.46% increase in selling activity over the last quarter.
Concerns around potential revenue diversion due to prediction markets offering bets on horse races.
Decline in net income (-29.36% YoY) and EPS (-25.26% YoY) in Q4 2025.
In Q4 2025, revenue increased by 6.68% YoY to $665.9 million, and gross margin improved to 30.21% (up 2.20% YoY). However, net income dropped by 29.36% YoY to $49.8 million, and EPS fell by 25.26% YoY to 0.71, reflecting some profitability challenges.
Analysts maintain a positive outlook, with price targets ranging from $124 to $139 and ratings of Overweight or Buy. Analysts highlight strong upside potential, solid Q1 gaming trends, and opportunities in digital gaming despite headwinds in land-based gaming.
