ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the ClearBridge Mid Cap Strategy reported underperformance versus the Russell Midcap Index, which returned 0.16% during the period, as narrow market leadership and sentiment-driven trading weighed on results. Weakness in information technology and real estate holdings pressured returns, while gains in select consumer ...

CDI’s Eighth Premier Historical Racing Entertainment Venue in KentuckyLOUISVILLE, Ky., Jan. 20, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (“CDI” or “the Company”) (Nasdaq: CHDN) announced today that Marshall Yards Racing & Gaming (“Marshall Yards”) will celebrate its grand opening on February 25, 2026. Marshall Yards will be the Company’s eighth premier historical racing entertainment venue in Kentucky. The 23,000 square foot state-of-the-art facility is located at the intersection of I-24 and I ...

Core Viewpoint - Churchill Downs Incorporated (CDI) will release its fourth quarter and full year 2025 financial results on February 25, 2026, after market close, followed by a conference call on February 26, 2026, at 9 a.m. ET to discuss the results [1]. Group 1 - The financial results announcement will be accessible through a real-time webcast and participants are encouraged to register in advance for the teleconference [2]. - A replay of the conference call will be available online by noon ET on February 26, 2026 [2]. - A copy of the news release detailing the quarterly results and relevant financial information will be available on the company's website [3]. Group 2 - Churchill Downs Incorporated has a history of over 150 years in creating entertainment experiences, starting with the Kentucky Derby [4]. - The company is headquartered in Louisville, Kentucky, and has expanded through various means including acquisitions and the operation of racing entertainment venues and casino gaming properties [4].

Core Viewpoint - Churchill Downs Incorporated (CHDN) is currently considered a unique sports asset available at a slightly undervalued price following a year of a declining share price [1] Company Summary - Churchill Downs Incorporated is an American company involved in the sports industry, particularly known for its horse racing operations [1] Investment Perspective - The company is viewed as an attractive investment opportunity at the intersection of value and growth, particularly for investors interested in small-cap stocks [1]

Core Viewpoint - Churchill Downs (CHDN) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value for a stock, influencing institutional investors' buying and selling decisions [4]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Churchill Downs' underlying business, which could lead to a higher stock price as investors respond positively [5][10]. Earnings Estimate Revisions - Churchill Downs is projected to earn $6.25 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 1.9% over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - The upgrade of Churchill Downs to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1 - The article compares two stocks in the Gaming sector: Churchill Downs (CHDN) and Take-Two Interactive (TTWO), focusing on which stock is more attractive to value investors [1] - CHDN has a Zacks Rank of 2 (Buy) indicating a stronger earnings outlook compared to TTWO, which has a Zacks Rank of 3 (Hold) [3] - Value investors analyze various traditional metrics to determine if a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - CHDN has a forward P/E ratio of 18.65, significantly lower than TTWO's forward P/E of 75.11, indicating a more attractive valuation for CHDN [5] - The PEG ratio for CHDN is 1.91, while TTWO's PEG ratio is 2.17, suggesting that CHDN may offer better value relative to its expected earnings growth [5] - CHDN's P/B ratio is 7.85 compared to TTWO's P/B of 13.28, further supporting CHDN's stronger valuation metrics [6] Group 3 - CHDN's improving earnings outlook contributes to its favorable position in the Zacks Rank model, making it a superior value option compared to TTWO [7]

Group 1 - The article emphasizes the importance for investors to initiate a portfolio rotation to reduce exposure to large-cap growth stocks, particularly in the tech sector, as 2025 approaches [1] - Gary Alexander, with extensive experience in covering technology companies and advising startups, provides insights into current industry themes [1] Group 2 - The article does not contain any additional relevant content regarding companies or industries [2][3]

Company Overview - Investors in Churchill Downs Incorporated (CHDN) should monitor stock movements due to significant activity in the options market, particularly the Dec. 19, 2025 $55 Call, which has shown high implied volatility [1] Implied Volatility Insights - Implied volatility indicates the market's expectations for future price movements, suggesting that investors anticipate a significant shift in the stock's price, potentially due to an upcoming event [2] Analyst Sentiment - Churchill Downs currently holds a Zacks Rank 3 (Hold) within the Gaming industry, which is in the top 33% of the Zacks Industry Rank. Over the past 60 days, one analyst has raised earnings estimates for the current quarter, while two have lowered theirs, resulting in a decrease of the Zacks Consensus Estimate from $1.05 to $0.95 per share [3] Trading Strategy Implications - The high implied volatility surrounding Churchill Downs may indicate a developing trading opportunity. Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of options value if the stock does not move as much as anticipated [4]

Core Points - A class-action lawsuit has been filed by Hagens Berman against horse betting entities, alleging that they are colluding with the assistance of AI to disadvantage everyday bettors [1] Group 1 - The lawsuit claims that the use of AI by these betting entities is illegal and creates an unfair advantage [1] - The action is aimed at protecting the interests of regular bettors who may be harmed by this alleged collusion [1]

Financial Data and Key Metrics Changes - The company achieved record net revenue and record adjusted EBITDA for the third quarter of 2025, with the live and historical racing segment also reaching record levels [5][22] - The live and historical racing segment grew revenue by 21% and adjusted EBITDA by 25% compared to the prior year quarter, marking the 21st consecutive quarter of record growth for this segment [22] - Free cash flow generated was $166 million, or $2.34 per share, representing a 13% increase from the prior year quarter [25][26] Business Line Data and Key Metrics Changes - The regional gaming properties performed well, with adjusted EBITDA increasing over $3 million, and margins up 1.1 points compared to the prior year quarter [25] - The Rose gaming venue in Virginia showed significant growth, with gaming revenues increasing and a strong customer database being built [14][15] - The Exacta business benefited from the growth of HRM operations in Kentucky and Virginia, contributing to record adjusted EBITDA for the Wagering Services and Solutions segment [24] Market Data and Key Metrics Changes - The company is expanding its international reach with the addition of three new points races in Dubai and Saudi Arabia, enhancing the quality of the international pathway to the Kentucky Derby [10] - Virginia has proven to be a strong investment environment, with 4,875 HRMs deployed and continued growth in gaming revenue [15][16] Company Strategy and Development Direction - The company is focused on five key growth catalysts for the Kentucky Derby, including ticketing revenue, broadcast rights, wagering, sponsorships, and selective renovations [7][11] - A significant investment of $280 to $300 million is planned for the construction of a new venue called Victory Run, aimed at enhancing the guest experience during Derby Week [12][13] - The company is committed to maintaining a disciplined capital management strategy while balancing share repurchases and project investments [27][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the Kentucky Derby and HRM properties, citing strong customer engagement and market expansion [20][22] - The company anticipates continued improvement in margins and performance as it drives better awareness and customer engagement in its venues [61] - Management acknowledged the challenges posed by illegal gaming machines in Virginia but noted strong enforcement and progress in addressing these issues [70][72] Other Important Information - The Board of Directors approved a 7% increase in dividends, marking the 15th consecutive year of increased dividends per share [27] - The company expects to spend $200 to $240 million on project capital in 2025, with a focus on strategic investments in its flagship assets [26][28] Q&A Session Summary Question: ROI targets for Victory Run - The company targets a 20% unlevered IRR focused on year three for the Victory Run project [32] Question: Prospective opportunity for ETGs - Management sees electronic table games as an important opportunity but is cautious about predictions due to regulatory factors [36][37] Question: Capital allocation and leverage - The company is committed to reducing leverage below 4 times next year while balancing share repurchases and capital investments [40] Question: Benefits of owning properties outright - Owning real estate provides stability and predictability, which management believes is not fully recognized in the market [42][43] Question: M&A environment - There has been a recent pickup in M&A activity, and the company remains flexible in its approach to acquisitions [46][48] Question: Emerging landscape of prediction markets - The company plans to approach prediction market operators to explain the legal framework governing horse racing wagering [66][67] Question: Illegal machines in Virginia - Management reported strong enforcement against illegal machines and believes the situation is under control [70][72]