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The market expects Churchill Downs (CHDN - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis racetrack operator and gambling company is expected to post quarterly earnings of $3.51 per share in its upcoming report, which represents a year-over-year change of +13.2%.

Revenues are expected to be $974.36 million, up 4.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.13% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Churchill Downs?For Churchill Downs, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Churchill Downs will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Churchill Downs would post earnings of $1.06 per share when it actually produced earnings of $1.21, delivering a surprise of +14.15%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Churchill Downs doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Churchill Downs (CHDN - Free Report) . CHDN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.21, while its industry has an average P/E of 24.02. Over the last 12 months, CHDN's Forward P/E has been as high as 22.77 and as low as 12.94, with a median of 16.51.

We also note that CHDN holds a PEG ratio of 1.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHDN's industry has an average PEG of 1.64 right now. Over the past 52 weeks, CHDN's PEG has been as high as 3.70 and as low as 1.63, with a median of 2.57.

Investors should also recognize that CHDN has a P/B ratio of 6.42. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 9.22. Over the past 12 months, CHDN's P/B has been as high as 10.03 and as low as 5.93, with a median of 7.60.

Finally, investors should note that CHDN has a P/CF ratio of 10.49. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CHDN's P/CF compares to its industry's average P/CF of 24.05. CHDN's P/CF has been as high as 18 and as low as 10.22, with a median of 13.14, all within the past year.

These are only a few of the key metrics included in Churchill Downs's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CHDN looks like an impressive value stock at the moment.

LOUISVILLE, Ky., June 18, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (“CDI” or “the Company”) announced today that the Company will release second quarter 2026 financial results after the market closes on Wednesday, July 29, 2026, and host a related conference call to discuss the quarter on Thursday, July 30, 2026, at 9 a.m. ET.

Investors and other interested parties may listen to the call by accessing the online, real-time webcast at http://ir.churchilldownsincorporated.com/events.cfm or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay of the call will be available at http://ir.churchilldownsincorporated.com/events.cfm by noon ET on Thursday, July 30, 2026.

A copy of CDI’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at http://www.churchilldownsincorporated.com.

About Churchill Downs Incorporated

Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for over 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. www.churchilldownsincorporated.com

Investor Contact: Sam Ullrich
(502) 638-3906
[email protected]

Churchill Downs Inc (NASDAQ:CHDN) reported better-than-expected earnings for the first quarter, after the closing bell on Wednesday.

The average of price targets set by Wall Street analysts indicates a potential upside of 37.7% in Churchill Downs (CHDN). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

Churchill Downs (CHDN) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

First American, Marathon Petroleum and Churchill Downs stand out as undervalued PEG plays as investors pivot to value amid high rates.

LOUISVILLE, Ky., May 01, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company", "CDI", "we") announced today that Always A Runner captured the Lilies in the 152nd running of the Longines Kentucky Oaks, topping a field of 13 fillies on fast track conditions.

Sales-growth screen highlights CHRD, BAC and CHDN as buys as U.S. equities hit new highs despite tariffs, oil swings and sticky inflation.

Investors need to pay close attention to CHDN stock based on the movements in the options market lately.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Churchill Downs (CHDN - Free Report) is a stock many investors are watching right now. CHDN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.21, while its industry has an average P/E of 23.31. Over the past 52 weeks, CHDN's Forward P/E has been as high as 22.77 and as low as 12.94, with a median of 16.51.

Investors will also notice that CHDN has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHDN's industry currently sports an average PEG of 1.63. CHDN's PEG has been as high as 3.70 and as low as 1.63, with a median of 2.57, all within the past year.

Another valuation metric that we should highlight is CHDN's P/B ratio of 6.42. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CHDN's current P/B looks attractive when compared to its industry's average P/B of 8.94. Over the past 12 months, CHDN's P/B has been as high as 10.03 and as low as 5.93, with a median of 7.60.

Finally, our model also underscores that CHDN has a P/CF ratio of 10.49. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CHDN's current P/CF looks attractive when compared to its industry's average P/CF of 23.78. Within the past 12 months, CHDN's P/CF has been as high as 18 and as low as 10.22, with a median of 13.14.

These are just a handful of the figures considered in Churchill Downs's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHDN is an impressive value stock right now.

An updated edition of the March 5, 2026, article.

Investing is often viewed through the lens of financial returns, but some sectors of the market raise questions that go beyond balance sheets and earnings reports. Among these are "sin stocks" —companies that generate revenues from products or services that some people consider ethically controversial. Despite the moral debate surrounding them, sin stocks have long attracted investors seeking stable cash flows, resilient demand and attractive shareholder returns.

Sin stocks refer to shares of companies operating in industries that are often considered socially or morally controversial, such as alcohol, tobacco, gambling, firearms and cannabis. Despite the ethical debate surrounding them, these businesses tend to generate steady demand and strong cash flows, making them a notable segment of the equity market.

The sin stock market functions much like any other segment of the equity market. These companies are publicly traded, generate revenues, report earnings and compete for market share.

Major players in these industries include tobacco giant Turning Point Brands (TPB - Free Report) , leading alcohol producer The Boston Beer Company Inc. (SAM - Free Report) , casino operators and companies dealing in cannabis. Because their products often have loyal consumer bases, these companies tend to maintain relatively stable sales even amid economic downturns.

For decades, "sin stocks" have occupied a unique corner of the investment world. While they often spark ethical debates, these companies have also built a reputation for generating resilient cash flows, rewarding shareholders and weathering economic downturns better than many traditional businesses.

As Environmental, Social and Governance (ESG) investing gains traction and societal attitudes continue to evolve, investors are once again asking a critical question: do sin stocks still deserve a place in a modern portfolio?

Why Do Investors Buy Sin Stocks?The appeal of sin stocks has little to do with controversy and everything to do with business fundamentals. Many sin industries benefit from relatively stable demand, regardless of economic conditions. Consumers tend to continue purchasing cigarettes, alcoholic beverages and gambling services even during recessions. This defensive quality can help protect revenues when discretionary spending declines.

Companies operating in the tobacco and alcohol markets often possess significant pricing power. Established brands can increase prices without experiencing a proportional decline in demand. This ability to pass costs on to consumers helps support profitability even during inflationary periods.

Another reason investors choose sin stocks is their high profitability and dividend potential. Many sin stocks operate in mature industries with predictable cash flows and limited capital expenditure requirements. As a result, companies frequently return substantial capital to shareholders through dividend payments, share repurchase programs and special distributions. Income-focused investors often find these businesses particularly attractive.

A growing number of institutional investors, pension funds and ESG-focused portfolios exclude sin stocks from their investment universe. This reduced participation can sometimes lead to lower valuations, creating opportunities for investors willing to own these companies.

Trends in Sin Stock SectorsSin stock sectors are evolving as consumer behavior, technology and regulations reshape traditional industries, such as alcohol, tobacco and gambling. Tobacco companies remain among the most prominent examples of sin stock investing. Although smoking rates have declined across many developed markets, industry leaders have maintained profitability through price increases, international expansion and investments in reduced-risk products, such as heated tobacco and nicotine pouches.

Alcohol producers benefit from strong brand loyalty and recurring consumer demand. Global spirits, beer and wine companies have increasingly focused on premium products, helping improve margins and drive revenue growth. Premiumization remains one of the most important trends shaping the industry, as consumers increasingly choose higher-quality products over larger quantities.

The gambling industry has undergone a significant transformation in the past decade. The rise of online casinos, mobile betting apps and legalized sports wagering has opened growth avenues for operators. Technology has fundamentally changed how consumers engage with gambling services, making the industry more accessible and scalable than ever before.

Cannabis is often viewed as the emerging segment of the sin stock universe. As legalization expands across various jurisdictions, companies are seeking to build national and global brands.

While the sector offers significant growth potential, it also presents elevated risks due to regulatory uncertainty, pricing pressures, limited profitability and capital constraints. For many investors, cannabis remains a high-risk, high-reward opportunity.

Regulatory changes and higher “sin taxes” remain a defining factor for these industries, influencing profitability and stock performance. Governments often impose higher taxes on tobacco, alcohol and gaming to discourage consumption while raising revenues. Overall, while the sin stock sectors face regulatory scrutiny, innovation, digital expansion and shifting consumer preferences continue to shape their long-term growth prospects.

If you are looking to capitalize on this trend, our Sin Stocks Screen makes it easy to identify high-potential stocks such as Monarch Casino & Resort, Inc. (MCRI - Free Report) , Churchill Downs Incorporated (CHDN - Free Report) , and Altria Group, Inc. (MO - Free Report) .

Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.

Monarch Casino presents a compelling long-term investment case, supported by its premium regional resort strategy, disciplined execution and focus on operational excellence. The company continues to strengthen its competitive position in key markets by enhancing guest experiences through property upgrades, modern gaming amenities and high-quality hospitality offerings. Management remains focused on targeted marketing, cost discipline and strategic reinvestment in its flagship properties to attract higher-value customers and increase spending per visit.

Its concentrated portfolio provides greater control over service quality, capital allocation and expense management. Backed by consistent property enhancements and a focus on premium experiences, this Zacks Rank #1 (Strong Buy) company appears well-positioned to sustain visitation growth, support margin expansion and generate stable cash flows over the long term. You can see the complete list of today’s Zacks #1 Rank stocks here.

Churchill Downs has been strengthening its long-term growth profile through a combination of iconic racing assets, expanding Historical Racing Machine (HRM) operations and disciplined capital allocation. Management highlighted record second-quarter revenues and adjusted EBITDA, supported by strong Kentucky Derby wagering, premium hospitality demand and solid performance across its gaming portfolio.

The company is also benefiting from growth initiatives, including HRM expansions in Kentucky and Virginia, a new seven-year NBC media agreement beginning in 2026 and ongoing investments in the Churchill Downs racetrack. Robust free cash flow generation, aggressive share repurchases and anticipated tax savings further enhance shareholder value, positioning the Zacks Rank #2 (Buy) company for sustained earnings growth and margin expansion.

Altria offers an attractive investment proposition, supported by its strong pricing power, resilient cash flows and shareholder-friendly capital allocation strategy. The company continues to offset cigarette volume declines through effective pricing actions across its smokeable and oral tobacco businesses, driving margin expansion and earnings growth.

Altria is also advancing its smoke-free transformation through the expansion of on! PLUS and investments in reduced-risk products, positioning itself to benefit from evolving consumer preferences. Robust free cash flow generation supports its industry-leading dividend yield and ongoing share repurchases. The company currently has a Zacks Rank #2.