Churchill Downs (CHDN) Upgraded to Buy: Here's Why

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].