5 Best “Sin Stocks” to Buy for Recession Protection

2. Churchill Downs Incorporated (NASDAQ:CHDN)

Number of Hedge Fund Holders: 52

Churchill Downs Incorporated (NASDAQ:CHDN) ranks among the best sin stocks to buy for recession protection. On June 12, Truist Securities restated its Buy rating and $145 price target for Churchill Downs Incorporated (NASDAQ:CHDN). The firm hosted the company’s CFO, Marcia Dall, and VP, IR, Sam Ullrich, alongside investors in Chicago.

Although investors were centered on the prospects for Derby 2027, not seeing any major developments, management remained optimistic about year-over-year growth and expectations for Derby Week expansion over time.

M&A was also a topic of discussion, with Truist stating that management would consider proposals without considering Derby, though management doesn’t consider recent industry action as a reasonable comparison.

Moreover, on May 26, Stifel reaffirmed its Buy rating and $139 price target for Churchill Downs Incorporated (NASDAQ:CHDN). Since late 2025, the firm has received an increasing number of inquiries from investors about a possible sale or other business moves concerning Churchill Downs’ regional gaming operations. Stifel stated that it is unaware of any M&A conversations but has looked into strategic options, with the firm seeing broader optionality.

Churchill Downs Incorporated (NASDAQ:CHDN) operates as a racing, online wagering, and gaming entertainment company. It is anchored by its flagship event, the Kentucky Derby. The company runs its business through three segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming.

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