In regards to stock performance in 2021, analyst expectations are positive for two of the largest publicly traded companies that own the Churchill Downs Inc. track. (CHDN) and Penn National Gaming Inc. (PENN).
Based on MarketBeat, the average recommendation from 10 brokers currently including Churchill Downs Inc. as a “buy,” with 9 of the analysts listing the stock in that category after the company saw its stock rise 21% in 2021 despite some volatility over the past year. .
For Penn National Gaming, December 27 review from Zacks, a leading investment research firm, listed the company as a holding, which isn’t bad considering the company has seen its stock slide from more than $120 a share into last winter down to $50.81 through the close of trading December 27.
In 2021, Churchill Downs Inc. sold Arlington International Racecourse property for the Chicago Bears, and earlier in the year it rebranded its thriving sports betting operations, bringing them under the TwinSpires banner — the same name as its successful pre-stakes bet shop. . Earlier this month, Bloomberg, in a story not named, reported ADW’s operation was for sale but a few weeks later Horse Racing Nation reported a Churchill executive had told employees that ADW not for sale.
CHDN owns Purebred songs Churchill Downs, Fair Grounds & Slots, Presque Isle Downs, and Lawn Park. It has several historic horse racing facilities in Kentucky and several casinos around the country. Zacks Lists CHDN as a Purchase based on high asset utilization rates and projected sales growth. It also notes that the company’s current-year earnings estimates have been revised upwards.
“Churchill Downs has not only earned a B Growth Score based on a number of factors,” Zacks said in his “Bottom Line” review, “but also a Zacks Rank #1 due to earnings estimate revisions. positive.”
Penn National Gaming owns four active Thoroughbred racetracks and offers regional casinos across the country. Zacks sees growth potential as the company expands Barstool Sportsbooks and iCasino stores across the country. It notes that Barstool Sports has been successful in connecting with younger customer segments. Concerns include the continued impact from COVID-19 limiting customer traffic at its physical locations.
Zacks notes: “Most gaming companies are in the sports betting business after legalization outside of Nevada. “Penn National has announced historic strategic partnerships with DraftKings, PointsBet, theScore and The Stars Group. The company is focused on partnering with various gaming companies to leverage their unique brands. serve large audiences and fulfill commitments to serving sports fans.
“The company is optimistic about the tremendous brand value of Barstool and theScore. The acquisition of theScore, the strongest sports brand in Canada, will automatically accelerate Penn National’s brand expansion in the country. As well as amplifying the company’s brand value, the acquisition will help cross-promote and cross-market between the two major brands.”
