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.
Aside from the betting markets, stocks related to this industry are also worth watching.
The host of the Kentucky Derby is Churchill Downs, Inc. (NASDAQ: 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 percent. The company pays a dividend of 0.9 percent.
Another racetrack stock is Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE), which owns Dover Downs Raceway, which is a harness racing track with pari-mutuel wagering.
The company posted a slight earnings loss for the latest reported quarter, and revenues dropped by 1.9 percent.
Penn National Gaming, Inc (NASDAQ: PENN), meanwhile, 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, and revenues were up 1.0 percent for the latest reported quarter.
Disclosure: Author did not own any of the above at the time the article was written.
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