Smart Money Ratings For 20 Most Undervalued Stocks

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8. Churchill Downs Incorporated (NASDAQ:CHDN)

Insider Transaction: 0.06%

Upside Potential: 47.55%

Forward P/E: 14.03

Based in Kentucky, Churchill Downs Incorporated (NASDAQ:CHDN) is a diversified entertainment company best known for operating the iconic Kentucky Derby. In addition to horse racing, the company owns racetracks, historical racing machine facilities, and online wagering platforms, including TwinSpires. Facing tough competition from the gaming and wagering sectors, the company expands in the market through acquisitions and property development. Besides consumer spending trends, Churchill Downs Incorporated (NASDAQ:CHDN)’s revenue relies on the evolution of digital gaming platforms.

The company is trading 8.38% above its 52-week low and maintains a value that reflects a regrowth. Churchill Downs Incorporated (NASDAQ:CHDN) reported a 9% year-over-year growth in its revenue during the first quarter of 2025, primarily contributed by increased revenue in its Live and Historical Racing and Gaming segments. However, the decline in net income by 5% indicates that the company has expenses that could offset the acquired gain. The opening of a new racing and gaming facility in Western Kentucky, with plans to further enhance the Kentucky Derby experience, signals long-term growth for the company.

The forward P/E ratio of 14.03, though relatively higher than many of the other picks, still indicates that the market may have discounted Churchill Downs Incorporated (NASDAQ:CHDN)’s future earnings potential. Over the previous six months, insider activity has been low at 0.06%, suggesting neutrality in managerial positioning. Insider Monkey noted 41 hedge fund holding positions, representing stable institutional confidence. Analysts have forecasted an upside potential of 47.55%. The company is a viable choice for investors seeking established names with room to run.

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