The Top Kentucky Derby Stocks

Only a couple more days until the Kentucky Derby, which will be held on Saturday, May 2, in Louisville, Kentucky. This is one of the most watched horse races in America. The Kentucky Derby is the first race of the Triple Crown of Thoroughbred Racing. The second race is the Preakness Stakes and the third is the Belmont Stakes.

If you want to make money from horse races, you can bet on a race horse, or you can buy a race track related stock. WallStreetNewsNetwork.com has a list of almost ten stocks in the horse racing industry, several of which pay dividends.

Related Link: What's Better: Earnings Season Or Derby Prep Season?

The host of the Kentucky Derby is Churchill Downs, Inc. CHDN, the holding company of the Churchill Downs Racetrack founded in 1875. Other operations it has includes Arlington Park, the Calder Race Course, the Fair Grounds Race Course, and the Trackside Off-Track-Betting Facilities. The stock trades at 45 times trailing earnings, 18 times forward earnings. Revenues for the latest quarter were up 3.6%. The company pays a dividend of 0.9%.

Another racetrack stock is Dover Downs Gaming & Entertainment, Inc. DDE, which owns Dover Downs Raceway, which is a harness racing track with pari-mutuel wagering. The company a slight earnings loss for the latest reported quarter, and revenues dropped by 1.9%.

Penn National Gaming, Inc PENN owns many racetracks and off-track wagering operations in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, Ohio, Pennsylvania, West Virginia, and Ontario. The stock has a forward PE of 23. Revenues were up 1.0% for the latest reported quarter.

Disclosure: Author did not own any of the above at the time the article was written.