Yahoo Finance Churchill Downs (CHDN) Expands With New Resort in Indiana
Churchill Downs Incorporated CHDN, or CDI, announced the opening of the Terre Haute Casino Resort, it’s very first entertainment property, in Indiana.
The new resort houses a 22-room hotel and event center, offering food and beverages in regionally inspired bars and restaurants including the Four Cornered Steakhouse, Rockwood Bar & Grill, The Soda Shoppe, Crossroads Center Bar and High Limit Bar.
On Apr 5, 2024, CDI opened a casino floor inside this 400,000-square-foot entertainment venue, which consists of 1,000 slot machines, 36 tables games and a top-tier sportsbook.
The company is optimistic about the new hotel opening at Terre Haute, given the warm response from customers upon the opening of the casino. CDI believes that an unparalleled gaming experience accompanied by the new luxury hotel component positions Terre Haute and the entire company well for growth prospects.
Strategic Investments Bode Well
Churchill Downs tends to focus on strategic project capital investments as its main growth initiative, which is incorporated in the form of building new property or revamping the already existing properties. Capital investments primarily reflect organic growth accompanied by the expansion and diversification of product offerings.
During the first quarter of 2024, CDI completed the new Paddock project, which is the most significant construction development ever at Churchill Downs Racetrack, for an investment of about $200 million. Furthermore, the company expects the Rose Gaming Resort, which is a historical racing machine (HRM) entertainment venue, to open in the third quarter of 2024. The total investment in this resort was approximately $460 million. For 2024, CDI expects $90 - $105 million for maintenance and $450-$550 million for new projects.
The company is optimistic about its project pipeline, which includes the 2025 Derby project and the Owensboro HRM venue in Kentucky (expected to open in the first quarter of 2025).
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Shares of CHDN have gained 10.8% in the past six months, outperforming the Zacks Gaming industry’s 1.6% growth.
Zacks Rank & Other Key Picks
Churchill Downs currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Consumer Discretionary sector.
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STRA has a trailing four-quarter earnings surprise of 36.2%, on average. The stock has increased 51.8% in the past year. The Zacks Consensus Estimate for STRA’s 2024 sales and earnings per share (EPS) indicates an increase of 6.4% and 33.3%, respectively, from the year-ago levels.
Netflix, Inc. NFLX presently sports a Zacks Rank of 1. NFLX has a trailing four-quarter earnings surprise of 9.3%, on average. The stock has hiked 80.4% in the past year.
The consensus estimate for NFLX’s 2024 sales and EPS implies a rise of 14.7% and 52.1%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. RCL currently sports a Zacks Rank of 1. RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has surged 76.7% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS implies growth of 16.6% and 61.9%, respectively, from the year-ago levels.
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