{"id":267293,"date":"2023-04-03T15:35:36","date_gmt":"2023-04-03T20:35:36","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=267293"},"modified":"2023-04-04T10:32:15","modified_gmt":"2023-04-04T15:32:15","slug":"churchill-downs-sands-among-goldman-preferred-stock-ideas","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/","title":{"rendered":"Churchill Downs, Sands Tipped as Lower Rate Winner By Goldman Sachs"},"content":{"rendered":"

The Federal Reserve could be nearing the end of its interest rate-hiking campaign, meaning it could be time for investors to consider stocks with growth profiles, including Churchill Downs (NASDAQ: CHDN) and Las Vegas Sands (NYSE: LVS).<\/p>\n

\"Churchill
Scenes from the Kentucky Derby. Goldman Sachs is constructive on Churchill Downs shares. (Image: Churchill Downs)<\/figcaption><\/figure>\n

That’s according to a new report from Goldman Sachs equity strategist David Kostin. Kostin and team screened the Russell 3000 Index for companies with market values of at least $1 billion and annual sales of at least $100 million — excluding biotechnology, energy, financial services, and real estate corporations — for high-margin growth traits.<\/p>\n

The aim of the endeavor was to unearth stocks that could thrive if rates fall and the economy flourishes, as well as those that could be durable in a potential recession. There are also other reasons to consider high-margin growth names, notes Kostin.<\/p>\n

While historical precedent suggests upside risk to our forecast for a flat equity market, we believe S&P 500 valuations and earnings each face specific headwinds in 2023 that will prevent near-term returns from being as strong as usual at the end of previous tightening cycles,\u201d<\/strong> wrote the Goldman Sachs strategist.<\/p><\/blockquote>\n

Churchill Downs and Las Vegas Sands were two of the three consumer cyclical stocks on the bank\u2019s list.<\/p>\n

Sands Sensible Inclusion on Goldman List<\/h2>\n

Already up 22% year to date, Sands makes for a practical inclusion on the Goldman Sachs list because shares of the Venetian Macau operator aren\u2019t highly correlated<\/a> to interest rates.<\/p>\n

\n

Additionally, by virtue of the fact the operator\u2019s entire portfolio<\/a> of six properties is located outside the US, the stock could be somewhat resilient to a domestic recession. In even better news for investors, it\u2019s likely that Sands turned a profit in Macau in the first quarter, or at the very least, significantly reduced earnings before interest, taxes, depreciation, and amortization (EBITDA) losses there.<\/p>\n<\/div>\n

While it remains to be seen exactly when the Fed will move to lower interest rates, such a move would benefit LVS. That’s presuming it needs to head to debt markets to raise capital for enhancements at its Macau properties and Marina Bay Sands, or for domestic endeavors, including its New York casino<\/a> bid. Plus, stocks in general often rise following the end of a monetary tightening cycle.<\/p>\n

\u201cUS equities have generally rallied in the months following the end of past Fed tightening cycles,\u201d according to Kostin.<\/p>\n

Churchill Call<\/h2>\n

Churchill Downs\u2019 appearance on the Goldman Sachs high-margin growth list arrives in advance of the Kentucky Derby<\/a>, the company\u2019s marquee event at its eponymous track in its home state.<\/p>\n

\n

With a 12-month sales growth consensus estimate of 15% and a margin growth forecast of 19% for the same period, Churchill Downs fits the bill as a high-margin\/high-growth stock. The shares are up 21.06% year-to-date, and some on Wall Street are bullish on the name.<\/p>\n<\/div>\n

Enhancements to its namesake track and a partnership with FanDuel are among the catalysts for Churchill stock, noted Macquarie analyst Chad Beynon in a recent note.<\/p>\n

\u201cWe expect the upgraded facilities and increasingly global viewers to continue to enjoy the event. In 2024E, CHDN will also benefit from the Paddock project (~$185-200m project, <8-year payback),\u201d wrote the analyst. \u201cGiven the iconic nature of the asset and the pricing power, we believe CHDN should garner a premium valuation multiple even to comparable global luxury and unique brands.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The Federal Reserve could be nearing the end of its interest rate-hiking campaign, meaning it could be time for investors to consider stocks with growth profiles, including Churchill Downs (NASDAQ: CHDN) and Las Vegas Sands (NYSE: LVS). That’s according to a new report from Goldman Sachs equity strategist David Kostin. Kostin and team screened the […]<\/p>\n","protected":false},"author":46,"featured_media":209609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10,14577,1074],"tags":[81913,81903,81900,80968],"acf":[],"yoast_head":"\nChurchill Downs, Sands Among Goldman Preferred Stock Ideas<\/title>\n<meta name=\"description\" content=\"Churchill Downs, Sands appear on Goldman Sachs list of high-margin stocks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Churchill Downs, Sands Among Goldman Preferred Stock Ideas\" \/>\n<meta property=\"og:description\" content=\"Churchill Downs, Sands appear on Goldman Sachs list of high-margin stocks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-03T20:35:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-04T15:32:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/Twin-Spires.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/\",\"url\":\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/\",\"name\":\"Churchill Downs, Sands Among Goldman Preferred Stock Ideas\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/Twin-Spires.jpg\",\"datePublished\":\"2023-04-03T20:35:36+00:00\",\"dateModified\":\"2023-04-04T15:32:15+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Churchill Downs, Sands appear on Goldman Sachs list of high-margin stocks.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-sands-among-goldman-preferred-stock-ideas\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/Twin-Spires.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/Twin-Spires.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Churchill Downs Racetrack in Louisville, Ky. Goldman Sachs likes the operator's stock. 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