Saturday, June 06, 2015

American Pharoah is the Triple Crown Winner: Are Horserace Stocks Winners?

For the first time in 37 years, a horse won the Triple Crown. A horse called American Pharaoh is only one of twelve to win the Kentucky Derby, Preakness Stakes and the Belmont Stakes.

One way to make money from horse races is to bet on a race horse, and the other way is to purchase a stock involved in the race track business. For a list of several stocks in the horse racing industry, several of which pay dividends, go to

Churchill Downs (CHDN), the holding company of the Churchill Downs Racetrack, is the host of the Kentucky Derby. It also owns Arlington Park, the Calder Race Course, the Fair Grounds Race Course, and the Trackside Off-Track-Betting Facilities. The stock trades at 49 times trailing earnings, 23 times forward earnings. Revenues for the latest quarter were up by over 50%. The company pays a dividend of 0.8%.

Dover Downs Gaming and Entertainment (DDE), which owns Dover Downs Raceway,  a harness racing track in Delaware with pari-mutuel wagering, generated breakeven earnings. For the latest reported quarter, revenues dropped by 2.5%.

Penn National Gaming Inc. (PENN) owns several 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 price to earnings ratio of 23.4. Revenues were up 3.6% for the latest reported quarter, and earnings rose by over 142%.

For a free downloadable list of  horse racing stocks, go to Also, if you want a free horse race handicapping program, check out the one at

Maybe your stock will win the Triple Crown.

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


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