Why Churchill Downs Stock Rocketed 32% Higher in May
Shares of horse track and casino operator Churchill Downs (NASDAQ: CHDN) took off in May, rising by an incredible 32% during the month, according to data from S&P Global Market Intelligence. Impressively, the stock was down just 3% through the first five months of the year, beating the S&P 500 index's 5% loss over the span.
The interesting thing is that Churchill Downs didn't start off the month of May even remotely close to the S&P 500. (For reference, the S&P only gained around 5% in May.) In fact, at one point in March, the stock had lost around half of its value since the start of the year. What changed was investor perception of the gambling space. When the effort to contain the spread of COVID-19 started, non-essential businesses were closed and people were asked to practice social distancing. The facilities that Churchill Downs operates were basically shut down.
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Source Fool.com
