Churchill Downs Incorporated (CHDN) Rose After Beating Earnings Expectations

The London Company, an investment management company, released “The London Company Mid Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets posted mixed results in 2024. The portfolio fell 5.9% (6%.0 net) during the quarter compared to a 3.4% decrease for the Russell Midcap Index. Both stock selection and sector exposure led the portfolio to lag relative to the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

The London Company Mid Cap Strategy highlighted stocks like Churchill Downs Incorporated (NASDAQ:CHDN), in the second quarter 2024 investor letter. Churchill Downs Incorporated (NASDAQ:CHDN) is a US-based racing, online wagering, and gaming entertainment company. The one-month return of Churchill Downs Incorporated (NASDAQ:CHDN) was -4.39%, and its shares gained 7.87% of their value over the last 52 weeks. On August 6, 2024, Churchill Downs Incorporated (NASDAQ:CHDN) stock closed at $132.64 per share with a market capitalization of $9.738 billion.

The London Company Mid Cap Strategy stated the following regarding Churchill Downs Incorporated (NASDAQ:CHDN) in its Q2 2024 investor letter:

Churchill Downs Incorporated (NASDAQ:CHDN) – CHDN outperformed in 2Q as recent results exceeded expectations, and the 150th Kentucky Derby delivered growth above expectations as well. Additionally, in our view the value creation from recent acquisitions is becoming clearer to the market. We continue to view CHDN as a high-quality business run by a management team with a track record of astute capital allocation and a strong pipeline of opportunities for continued growth.

Increased: Churchill Downs (CHDN) – The increase reflects our confidence in the long-term outlook for the business and our desire to reduce cash in the portfolio.”

A city skyline looking down on a busy racetrack with jockeys on horseback.

Churchill Downs Incorporated (NASDAQ:CHDN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Churchill Downs Incorporated (NASDAQ:CHDN) at the end of the first quarter which was 23 in the previous quarter. In the second quarter, Churchill Downs Incorporated (NASDAQ:CHDN) reported a record net revenue of $891 million and adjusted EBITDA of $445 million. While we acknowledge the potential of Churchill Downs Incorporated (NASDAQ:CHDN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Churchill Downs Incorporated (NASDAQ:CHDN) and shared The London Company SMID Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.