PlayAGS (NYSE:AGS) Stock, Quote.Headers.trade-ideas

PlayAGS

PlayAGS Inc is a designer and supplier of gaming products and services for the gaming industry. The company mainly supplies electronic gaming machines (EGM), server-based systems and back-office systems which are used by casinos, and various gaming locations. Its operating segments are EGM, Table Products, and Interactive. The EGM segment offers a selection of video slot titles developed for the world-wide marketplace as well as EGM cabinets. Its Table Products segments include live proprietary table games and side bets, as well as ancillary table products. The Interactive segment consists of delivering games through mobile apps such as Lucky Play Casino and Vegas Fever. It earns a majority of its revenue from Electronic Gaming Machines segment and geographically from the United States.

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PENN

Shares of PENN Entertainment, Inc. (NASDAQ: PENN) have moved down 28.5% year to date against the Zacks Gaming industry&#39;s 7.3% growth and the S&amp;P 500&#39;s rise of 19.6%.

PENN Entertainment Stock Falls 29% YTD: Buy the Dip or Wait?

Gaming

APEI

MGM Resorts International&#39;s (NYSE: MGM) leading sports betting and the iGaming brand, BetMGM, expanded its mobile sports betting service throughout Washington, D.C. This move allows sports fans across the district to use the BetMGM app and earn rewards from MGM Resorts and Marriott Bonvoy.

MGM Resorts&#39; BetMGM Expands Reach in Washington DC

Media

Adtalem Global Education Inc. Common Stock

ATGE

RICK

RCI Hospitality Holdings, Inc. (NASDAQ: RICK) provided an update on its business for the third quarter of fiscal 2024. The company expects to release fiscal third-quarter numbers tentatively before Aug 8, 2024.

RCI Hospitality Posts Preliminary Q3 Results, Stock Up

PlayAGS Inc

AMERIGUARD SECURITY SVC by Ameriguard Security Services Inc.

Ameriguard Security Services Inc

ARGENTUM SILVER CORP by Argentum Silver Corp.

Argentum Silver Corp

GS: 3% &#x7C; <a href="https://www.benzinga.com//node/42999133">Goldman Sachs Q4 Investment Banking Fees Rose 24% YoY, Global Banking &amp; Markets Revenue Rose 33%, Provision For Credit Losses Fell 39%</a>
&nbsp;
VCEL: -12% &#x7C; <a href="https://www.benzinga.com//node/42997435">Vericel shares are trading lower after the company issued preliminary FY24 and Q4 net revenue below estimates.</a>
&nbsp;
COMP: 11% &#x7C; <a href="https://www.benzinga.com//node/42998131">Compass shares are trading higher after the company raised its Q4 and FY24 guidance.</a>

Movers

COMP

VCEL

Market-Moving News for January 15th

AVXL

Anavex Life Sciences Reveals Peer-reviewed Publication Of Oral Blarcamesine Phase IIb/III Data In Journal Of Prevention Of Alzheimer's Disease

Seaport Global analyst Kenneth Zener upgrades KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) from Sell to Neutral.

Upgrades

Seaport Global Upgrades KB Home to Neutral

Prairie expects Average Daily Production: 7,000 – 8,000 barrels of oil equivalent per day (BOEPD), representing a ~300% increase year-over-year.
Prairie plans to actively pursue additional strategic acquisition opportunities, the completion of which will result in an update to guidance to reflect the enhanced scale and value of the Company.

Guidance

PROP

Prairie Operating Expects 2025 Net Income  Of $69M - $102M, Adjusted EBITDA Of $100M - $140M,

Goldman Sachs Total Loans Increased 7% During The Year

QBTS

D-wave Quantum Inks Pact With Carahsoft Partner To Expand Distribution Of Quantum Computing Solutions To The Public Sector

Rosenblatt analyst Blair Abernethy maintains Silvaco Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SVCO#NASDAQ">SVCO</a>) with a Buy and maintains $18 price target.

Price Target

SVCO

Rosenblatt Maintains Buy on Silvaco Group, Maintains $18 Price Target

ZLAB

Zai Lab Highlights Topline Results For TIVDAK In China Subpopulation Of Global Phase 3 innovaTV 301 Trial In Patients With Recurrent or Metastatic Cervical Cancer

Contracts

STRM

Streamline Health Signs New Contract For Use Of eValuator With Deaconess Health System

Goldman Sachs Q4 Investment Banking Fees Rose 24% YoY, Global Banking & Markets Revenue Rose 33%, Provision For Credit Losses Fell 39%

D. Boral Capital analyst Jesse Sobelson maintains New Horizon Aircraft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOVR#NASDAQ">HOVR</a>) with a Buy and maintains $2 price target.

HOVR

D. Boral Capital Maintains Buy on New Horizon Aircraft, Maintains $2 Price Target

Needham analyst Chris Pierce reiterates TrueCar (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRUE#NASDAQ">TRUE</a>) with a Buy and maintains $5 price target.

Reiteration

TRUE

Needham Reiterates Buy on TrueCar, Maintains $5 Price Target

D. Boral Capital analyst Jason Kolbert maintains Context Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CNTX#NASDAQ">CNTX</a>) with a Buy and maintains $9 price target.

CNTX

D. Boral Capital Maintains Buy on Context Therapeutics, Maintains $9 Price Target

WIIM

Goldman Sachs shares are trading higher following better-than-expected Q4 financial results.

XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>) has sustained <a href="https://www.benzinga.com/money/ripple-xrp-price-prediction">its bullish momentum</a> for the second consecutive day, driven by speculation around an XRP ETF and increasing whale transactions. 
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Cryptocurrency</td>
<td>Price&nbsp;&nbsp;&nbsp;</td>
<td>Market Cap</td>
<td>24-Hour Trend</td>
<td>7-Day Trend</td>
</tr>
<tr>
<td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td>
<td>&nbsp;$2.76</td>
<td>$158.5 billion</td>
<td>+7.5%&nbsp;</td>
<td>+19%&nbsp;</td>
</tr>
<tr>
<td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td>
<td>&nbsp;$96,664.83</td>
<td>$1.9 trillion</td>
<td>+0.2%&nbsp;</td>
<td>+1.6%&nbsp;</td>
</tr>
<tr>
<td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td>
<td>&nbsp;$3,197.98</td>
<td>$385.4 billion</td>
<td>-0.5%&nbsp;</td>
<td>-4.5%&nbsp;</td>
</tr>
</tbody>
</table>
</figure>
Trader Notes: Crypto trader Cold Blooded Shiller described XRP as an "alive monster," predicting its ascent to $4.2 if the rally maintains momentum.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The <a href="https://twitter.com/search?q=%24XRP&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$XRP</a> monster is alive. Pushing against the highs, won&#39;t be long before this breaks and continues it&#39;s ascent upward. $4.20. <a href="https://t.co/srLuW0zF2T">https://t.co/srLuW0zF2T</a> <a href="https://t.co/oOk0X8Jcko">pic.twitter.com/oOk0X8Jcko</a>
&mdash; Cold Blooded Shiller (@ColdBloodShill) <a href="https://twitter.com/ColdBloodShill/status/1879458140808524140?ref_src=twsrc%5Etfw">January 15, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Crypto trader Satoshi Flipper suggested XRP is on the verge of price discovery, indicating the potential for new highs.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">PRICE DISCOVERY FOR <a href="https://twitter.com/search?q=%24XRP&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$XRP</a> LOADING <a href="https://t.co/BQXCcZawgW">pic.twitter.com/BQXCcZawgW</a>
&mdash; Satoshi Flipper (@SatoshiFlipper) <a href="https://twitter.com/SatoshiFlipper/status/1879479514813927862?ref_src=twsrc%5Etfw">January 15, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Statistics: Santiment data highlighted by crypto chart analyst Ali Martinez <a href="https://x.com/ali_charts/status/1879457747537670249">shows</a> transactions over $1 million surged to 341 in the last 24 hours.
Coinglass reported XRP futures open interest reached $6 billion (as of Jan. 15), marking an 18% daily increase, the highest since December.
Derivatives trading volume rose 25%, while XRP spot inflows hit $99.3 million, a record high since Dec. 1, 2024.
Community News: David Gokhshtein, founder of Gokhshtein Media, <a href="https://x.com/davidgokhshtein/status/1879352526119850390">acknowledged</a> the rally, stating XRP holders "deserve" this momentum.
Omni Foundation co-founder Austin King <a href="https://x.com/0xASK/status/1879364677316321362">shared</a> insights into Ripple&#8217;s broader vision, beyond the anticipated XRP ETF launch in 2025:
<ul>
<li>Ripple plans to expand its fast, low-cost payment solutions to attract customers from traditional finance.</li>
<li>The company has processed over $50 billion in payments and aims to position the XRP Ledger as the hub for tokenizing global financial assets.</li>
</ul>
Jan. 15 marks the SEC's deadline to file an opening brief in its appeal against Judge Torres' ruling. 
Speculation remains over whether the SEC will contest XRP's classification as a security in programmatic sales.
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42985959/xrp-up-16-in-7-days-could-it-temporarily-flip-ethereum-or-even-bitcoin">XRP Up 16% In 7 Days: Could It Temporarily Flip Ethereum Or Even Bitcoin?</a></li>
</ul>
Image: Shutterstock

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

$BTC

$ETH

$XRP

XRP Price Surges Another 7.5%: What Is Going On?

Macro Notification

Goldman Sachs Gr Q4 2024 GAAP EPS $11.95 Beats $8.30 Estimate, Sales $13.87B Beats $12.391B Estimate

HC Wainwright &amp; Co. analyst Yi Chen reiterates Regenxbio (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGNX#NASDAQ">RGNX</a>) with a Buy and maintains $36 price target.

RGNX

HC Wainwright & Co. Reiterates Buy on Regenxbio, Maintains $36 Price Target

Needham analyst Scott Berg reiterates UiPath (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PATH#NYSE">PATH</a>) from Hold to Hold.

PATH

Needham Reiterates Hold on UiPathto Hold

Jones Trading analyst Jason Weaver maintains GEO Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEO#NYSE">GEO</a>) with a Buy and raises the price target from $32 to $55.

Jones Trading Maintains Buy on GEO Group, Raises Price Target to $55

Evercore ISI Group analyst James West downgrades NOV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOV#NYSE">NOV</a>) from Outperform to In-Line and lowers the price target from $25 to $18.

Downgrades

Evercore ISI Group Downgrades NOV to In-Line, Lowers Price Target to $18

Showcasing Seeking Alpha's May 2024 New Analysts

With the growing adoption of digital technologies, changing government frameworks, and rising disposable income, the entertainment industry is poised for solid long-term growth. Thus, investors could consider buying quality entertainment stocks Accel Entertainment (ACEL), DoubleDown Interactive (DDI), and PlayAGS (AGS), which offer value and growth. Continue reading... The rapid technological evolution has resulted in boosting demand of the media and entertainment industry together with the widespread prevalence of social video platforms, specialized streaming services, and cloud gaming. Online gaming has opened various new opportunities for the global gaming industry.
Given the industry's shiny prospects, investors could consider buying fundamentally sound entertainment stocks Accel Entertainment, Inc. (<a href="https://stocknews.com/stock/ACEL/">ACEL</a>), DoubleDown Interactive Co., Ltd. (<a href="https://stocknews.com/stock/DDI/">DDI</a>), and PlayAGS, Inc. (<a href="https://stocknews.com/stock/AGS/">AGS</a>), offering value and growth.
The entertainment industry has transformed widely, adapting to the internet penetration with streaming services and wide prevalence of social media platforms leading to ever-growing online content consumption. According to Statista, the <a href="https://www.statista.com/outlook/dmo/app/entertainment/worldwide">entertainment market worldwide</a> is projected to reach $53.13 billion by 2027.
The global movies and entertainment market is expected to grow at a <a href="https://www.grandviewresearch.com/industry-analysis/movies-entertainment-market">CAGR of 8.1%</a> resulting in revenue volume of $169.68 billion by 2030, influenced by favorable demographics, cloud gaming, changing consumption patterns, rise in disposable incomes, and the propensity to spend on leisure and entertainment.
Amid rising expense of specialist gaming PCs or consoles coupled with restrained hardware mobility, cloud gaming appears more accessible leading to a strong upsurge. The <a href="https://www.factmr.com/report/cloud-gaming-market">global cloud gaming market</a> is forecasted to hit $6.62 billion by 2034, expanding at a CAGR of 22.6%.
Besides, traditional gambling culture, regulatory framework evolution, tourism and destination appeal have contributed to the casino market's demand as the market is poised to <a href="https://www.thebusinessresearchcompany.com/report/casino-global-market-report#:~:text=It%20will%20grow%20from%20%24131.42,(CAGR)%20of%205.2%25.">grow to $165.72 billion by 2028</a>. The growth can be attributed to emergence of cryptocurrency, regulatory adaption to online gambling, and innovation in gaming technologies.
Given these encouraging trends, let's delve deeper into the fundamentals of top Entertainment stocks ACEL, DDI, and AGS.
Accel Entertainment, Inc. (<a href="https://stocknews.com/stock/ACEL/">ACEL</a>)
ACEL operates as a distributed gaming operator. The company is involved in the installation, maintenance, and operation of gaming terminals; redemption devices that disburse winnings and contain automated teller machine functionality, and other amusement devices in authorized non-casino locations.
In terms of forward Price/Sales, ACEL is trading at 0.71x, 19.1% lower than the industry average of 0.88x. Further, the stock's forward <a href="https://www.investopedia.com/terms/e/enterprisevaluesales.asp">EV/Sales</a> multiple of 0.95 is 19.9% lower than the industry average of 1.18. Also, its forward EV/EBITDA of 6.20x is 34.7% lower than the industry average of 9.49x.
ACEL's revenue and EBITDA have grown at respective CAGRs of 48.9% and 81.8% over the past three years. The company's total assets has increased 15.9% over the same timeframe, while its levered free cash flow has improved at CAGR of 17.4%.
For the first quarter that ended March 31, 2024, ACEL's total net revenues grew 2.9% year-over-year to $301.82 million and its operating income was $25.56 million. The company's adjusted EBITDA of $46.25 million indicates marginal growth from the prior year's quarter. Its adjusted net income and EPS came in at $19.50 million and $0.09 for the quarter, respectively.
Furthermore, the company's total assets stood at $919.13 million as of March 31, 2024, compared to total assets of $912.89 million as of December 31, 2023.
Analysts expect ACEL's revenue for the fiscal year (ending December 2025) to grow 3% year-over-year to $1.24 billion, and its EPS is expected to increase marginally year-over-year to $0.84 for the same period. Moreover, the company has surpassed the consensus revenue and EPS estimates in all of the trailing four quarters.
Over the past month, the stock has surged 6.8% and marginally over the past year to close the last trading session at $10.21.
ACEL's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
ACEL has an A grade for Sentiment and a B for Growth, Value and Stability. The stock has topped among the 25 stocks in the <a href="https://stocknews.com/category/entertainment-casinos-gambling/">Entertainment – Casinos/Gambling</a> industry.
To check other POWR Ratings of ACEL for Quality, and Momentum, <a href="https://stocknews.com/stock/ACEL/">click here</a>.
DoubleDown Interactive Co., Ltd. (<a href="https://stocknews.com/stock/DDI/">DDI</a>)
Headquartered in Seoul, South Korea, DDI engages in the development and publishing of casual games and mobile applications in South Korea. The company publishes digital gaming content on mobile and web platforms. It offers DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox, and cash me out games.
In terms of forward non-GAAP P/E, DDI is trading at 6.09x, 51.4% lower than the industry average of 12.52x. Similarly, the stock's forward EV/Sales multiple of 1.05 is 44% lower than the industry average of 1.87. Also, its forward Price/Book of 0.04x is 98.1% lower than the industry average of 1.98x.
DDI's EBIT and net income have grown at respective CAGRs of 8.5% and 21.2% over the past three years. The company's EPS has increased 15.8% over the same timeframe, while its normalized net income and tangible book value have improved at CAGRs of 17.9% and 140%, respectively.
During the first quarter that ended March 31, 2024, DDI's revenue increased 13.5% year-over-year to $88.14 million. Its operating income rose 22.3% from the year-ago value to $31.06 million. The company's net income and EPS stood at $30.36 million and $12.23, up 28.2% and 28.1% from the previous year's quarter, respectively.
In addition, the company's adjusted EBITDA grew 25.6% year-over-year to $31.90 million.
Analysts expect DDI's revenue for the fiscal year (ending December 2024) to increase 10% year-over-year to $339.82 million. For the same year, the company's EPS is expected to grow 1.5% year-over-year to $2.06. Also, the company topped the consensus EPS estimates in three of the four trailing quarters.
Shares of DDI have gained 70.4% over the past six months and 36.2% over the past year to close the last trading session at $12.54.
DDI's POWR Ratings reflect its robust outlook. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
DDI has an A grade for Sentiment, Quality, and Value. It also has a B grade for Growth. The stock has topped among the 17 stocks within the <a href="https://stocknews.com/category/entertainment-video-games/">Entertainment – Toys &amp; Video Games</a> industry.
To see the other ratings of DDI for Momentum, and Stability, <a href="https://stocknews.com/stock/DDI/">click here</a>.
PlayAGS, Inc. (<a href="https://stocknews.com/stock/AGS/">AGS</a>)
AGS designs and supplies gaming products and services for the gaming industry internationally. The company operates in three segments: Electronic Gaming Machines (EGM); Table Products; and Interactive Games (Interactive).
In terms of forward EV/EBITDA, AGS is trading at 5.62x, 40.9% lower than the industry average of 9.50x. Likewise, the stock's forward Price/Cash Flow multiple of 5.06 is 45.3% lower than the industry average of 9.25. Also, its forward EV/EBIT of 12.59x is lower than the 13.83x industry average.
AGS' revenue and EBITDA have grown at respective CAGRs of 30% and 39.4% over the past three years. The company's levered free cash flow has increased 22.1% over the same timeframe.
On May 9, AGS entered into a definitive agreement to be acquired by affiliates of Brightstar Capital Partners, a middle market private equity firm focused on investing in industrial, manufacturing, and services businesses for nearly $1.1 Billion.
During the first quarter that ended March 31, 2024, AGS' total revenues increased 15.4% year-over-year to $95.97 million. Its income from operations grew 68.6% from the year-ago value to $19.80 million. The company's net income came in at $4.34 million and $0.10 per common share, against a net loss of $334 thousand and $0.01 per share in the prior year's quarter, respectively.
In addition, the company's cash and cash equivalents and total assets stood at $40.36 million and $666.69 million as of March 31, 2024.
Street expects AGS' revenue for the second quarter (ending June 2024) to increase 4.1% year-over-year to $93.55 million and its EPS is expected to grow 463.1% year-over-year to $0.11. Furthermore, AGS has surpassed the consensus revenue estimates in each of the trailing four quarters.
AGS' stock has gained 38.9% over the past six months and 101.2% over the past year to close the last trading session at $11.39.
AGS' sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
The stock has an A grade for Growth and a B for Sentiment, Value, and Quality. Within the Entertainment – Casinos/Gambling industry, AGS is ranked #2 among the 27 stocks.
<a href="https://stocknews.com/stock/AGS/">Click here</a> to access additional ratings of AGS for Stability and Momentum.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
ACEL shares were trading at $10.27 per share on Friday afternoon, up $0.06 (+0.59%). Year-to-date, ACEL has declined 0.00%, versus a 15.59% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/acel-ddi-ags-3-entertainment-stocks-offering-value-and-growth/>3 Entertainment Stocks Offering Value and Growth</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Entertainment Stocks Offering Value and Growth

The casino & gambling industry is thriving owing to the rise of online gambling, mobile sports betting, and technological advancements. Additionally, the growing appeal of enhanced traditional gaming experiences contributes to this expansion. With this in mind, does Churchill Downs (CHDN) possess the fundamentals to capitalize on the booming sector? Read more to find out… The COVID-19 pandemic had a profound effect on the casino gambling industry, leading to widespread closures and reduced operations at many land-based casinos. In response, there was a notable shift towards online gambling platforms, which saw a significant rise in demand as individuals sought safer ways to engage in gaming from home.
Looking forward, the casino gambling sector is expected to experience substantial growth owing to the increasing popularity of gambling and the expansion of online platforms. According to Research and Markets, the market's gross gaming revenue is forecasted to grow from $150.29 billion in 2024 to $191.36 billion by 2029, at <a href="https://www.researchandmarkets.com/reports/5937494/casino-gambling-market-share-analysis?utm_source=GNE&amp;utm_medium=PressRelease&amp;utm_code=7nmrfn&amp;utm_campaign=1943456+-+Casino+Gambling+-+Market+Share+Analysis%2c+Industry+Trends+%26+Statistics%2c+Growth+Forecasts+2020+-+2029&amp;utm_exec=cosmmspi">a CAGR of 4.95%</a>.
That being said, watching out for Churchill Downs Incorporated (<a href="https://stocknews.com/stock/CHDN/">CHDN</a>) in this promising environment could be a strategic move. The company is well-positioned to capitalize on the expanding gambling and entertainment industry. To understand this potential, let's examine the industry trends and CHDN's role more closely.
The U.S. commercial gaming industry <a href="https://www.americangaming.org/resources/state-of-the-states-2024/">achieved record revenues</a> for the third consecutive year in 2023. The industry's resilience was evident as consumers continued to show strong interest in traditional casino games available at the 486 commercial casinos nationwide and newer offerings in iGaming and sports betting.
Moreover, the sector demonstrated resilience and robust consumer demand despite broader economic issues such as persistent inflation and high interest rates.
Furthermore, betting is critical in horse racing as well, with <a href="https://www.theplaidhorse.com/2024/06/05/beyond-the-finish-line-the-economics-of-horse-racing/">billions of dollars wagered annually</a>. The horse and sports betting market is experiencing notable growth, driven by diverse betting options for races and other sports events. The sector's expansion is further supported by increasing globalization and digital connectivity.
Integrating online betting platforms and live streaming services has transformed traditional wagering and viewing experiences, attracting a younger, more tech-savvy audience. According to Technavio, the global horse and sports betting market is projected to <a href="https://www.prnewswire.com/news-releases/horse-and-sports-betting-market-size-is-set-to-grow-by-usd-221-4-million-from-2024-2028--increasing-digital-connectivity-boost-the-market-technavio-302161781.html#:~:text=NEW%20YORK%2C%20June%204%2C%202024%20%2FPRNewswire%2F%20--%20The,CAGR%20of%20over%2011.06%25%20during%20the%20forecast%20period.">grow by $221.4 million from 2024 to 2028</a>, with an estimated CAGR of over 11.06%.
Given these trends, CHDN stands to benefit significantly. With a market capitalization of $9.72 billion, CHDN excels in racing, online wagering, and gaming entertainment. It prominently features its flagship event, the Kentucky Derby. The company operates 14 live and historical racing venues across three states, nine casino gaming properties in eight states, and 13 retail sportsbooks.
Additionally, CHDN runs an online horse racing wagering platform in the United States. Its diverse business segments include Live and Historical Racing; TwinSpires; and Gaming which underscore the company's extensive market presence.
CHDN's shares have shown promising performance, increasing 8.6% over the past six months and 8.8% over the past year to close the last trading session at $132.43. Let's now explore the factors that might influence CHDN's performance in the near term.
Recent Developments
On July 24, CHDN announced <a href="https://ir.churchilldownsincorporated.com/news-releases/news-release-details/churchill-downs-incorporated-reveals-grandstand-club-and">an $80-$90 million renovation</a> of the existing grandstand at Churchill Downs Racetrack. The project will upgrade ticketed seating options while significantly enhancing amenities for all guests in the grandstand area.
Construction on the Grandstand Club and Pavilion has begun this month, with completion planned for the 151st Kentucky Derby in May 2025. Modernizing facilities and enriching guest experiences could bolster CHDN's growth prospects by attracting more visitors and increasing overall revenue.
On May 15, CHDN <a href="https://ir.churchilldownsincorporated.com/news-releases/news-release-details/churchill-downs-incorporated-opens-terre-haute-casino-resort-0">announced the opening</a> of its new 122-room hotel and event center at Terre Haute Casino Resort. The company opened the 400,000-square-foot regional entertainment venue's casino floor on April 5, 2024, with 1,000 slot machines, 36 table games, and a state-of-the-art sportsbook.
The new infrastructure is poised to bring thousands of visitors from the region to enjoy an unparalleled gaming experience and make it a premier entertainment destination. This, in turn, could expand the company's customer base and improve its growth prospects.
Sound Historical Growth
Over the past three years, CHDN's revenue has grown at a CAGR of 21.6%. Its operation income (EBIT) and total assets increased at CAGRs of 37% and 34.1%, respectively. In addition, the company's EBITDA rose at a CAGR of 33.8% during the period.
Moreover, during the same time frame, the company's net income and EPS grew at respective CAGRs of 25.9% and 28.7%.
Robust Financials
During the second quarter of fiscal 2024, which ended on June 30, 2024, CHDN's total net revenue increased 15.9% year-over-year to $890.70 million. Its operating income stood at $330 million, up 46.3% year-over-year. Moreover, the company's adjusted <a href="https://www.investopedia.com/terms/e/ebitda.asp">EBITDA</a> hit an all-time high of $444.80 million, up 22.3% year-over-year.
Furthermore, net income and net income per common share attributable to CHDN rose 46.4% and 50% from the prior year's period to $209.30 million and $2.79, respectively. In addition, as of June 30, 2024, CHDN's total assets amounted to $7.17 billion, up from $6.96 billion as of December 31, 2023.
Favorable Analyst Estimates
Analysts expect CHDN's revenue for the fiscal third quarter (ending September 2024) to grow 10.8% year-over-year to $634.35 million. Plus, the consensus EPS estimate of $1.08 for the ongoing quarter indicates an improvement of 24.6% from the previous year's period.
Also, the company has topped consensus revenue estimates in each of the trailing four quarters, which is impressive. Looking forward, for the fiscal year ending December 2024, Street expects CHDN's revenue and EPS to increase 12.1% and 23.8% from the previous year to $2.76 billion and $6.18, respectively.
Furthermore, the company's revenue and EPS for the next fiscal year ending in December 2025 are expected to grow 10.5% and 23% year-over-year to $3.05 billion and $7.60, respectively.
Mixed Profitability
CHDN's trailing-12-month gross profit margin of 34.34% is 6.9% lower than the 36.87% industry average. Its trailing-12-month levered FCF margin of negative 5.86% is unfavorably compared to the industry average of 5.39%. Furthermore, its trailing-12-month asset turnover ratio of 0.38x is 61.7% lower than the industry average of 0.99x.
However, the company's trailing-12-month EBITDA margin of 32.74% is 186.8% more than the industry average of 11.42%. Similarly, its trailing-12-month net income margin of 15.61% is 233.8% higher than the industry average of 4.68%.
Also, the stock's trailing-12-month ROCE, ROTC, and ROTA of 43.24%, 7.51%, and 5.69% are 270.2%, 20.9%, and 33.5% higher than the industry averages of 11.68%, 6.22%, and 4.26%, respectively.
Stretched Valuation
In terms of forward non-GAAP P/E, CHDN is trading at 21.43x, 46.6% higher than the industry average of 14.63. The stock's forward EV/Sales multiple of 5.24 is 353.9% higher than the industry average of 1.15x. Likewise, its forward EV/EBITDA of 12.32x is 30.2% higher than the industry average of 9.47x.
Additionally, CHDN's forward Price/Sales multiple of 3.52 is 324.7% higher than the industry average of 0.83x. Furthermore, its forward Price/Book ratio of 8.51x is 244.9% higher than the industry average of 2.47x.
POWR Ratings Reflect Uncertainty
CHDN's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, which translates to Neutral in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. CHDN has a B grade in Sentiment, which is in line with its optimistic analyst estimates. In addition, the stock has a C grade for Quality, which is justified by its mixed profitability metrics.
The stock also has a D grade in Valuation, consistent with its higher-than-industry valuation. Within the <a href="https://stocknews.com/category/entertainment-casinos-gambling/">Entertainment - Casinos/Gambling</a> industry, CHDN is ranked #20 out of 25 stocks.
Beyond what I have stated above, we have also given CHDN grades for Growth, Momentum, and Stability. Get all CHDN ratings <a href="https://stocknews.com/stock/CHDN/">here</a>.
Bottom Line
The rise of online gambling, betting, and wagering in recent years has propelled the casino and gambling industry to new heights. CHDN, with its strategic expansion initiatives, is well-positioned to leverage this trend and achieve significant growth. The company's financial performance and growth prospects also look promising.
However, given CHDN's current high valuation, it may be prudent to monitor for a more advantageous entry point in the stock.
How Does Churchill Downs Incorporated (CHDN) Stack Up Against Its Peers?
Given the current uncertainty around CHDN's near-term prospects, its potential to outperform in the coming weeks and months may be less clear. However, there are other industry peers with much more impressive POWR Ratings.
So, consider these three A (Strong Buy) and B (Buy) rated stocks from the Entertainment - Casinos/Gambling industry: Super Group Limited (<a href="https://stocknews.com/stock/SGHC/">SGHC</a>), Accel Entertainment, Inc. To explore more A &amp; B-rated casino and gambling stocks, click <a href="https://stocknews.com/category/entertainment-casinos-gambling/">here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>
&nbsp;

<hr />
CHDN shares were unchanged in premarket trading Thursday. Year-to-date, CHDN has declined -1.85%, versus a 9.81% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/chdn-sghc-acel-ags-is-churchill-downs-a-bet-worth-taking/>Is Churchill Downs a Bet Worth Taking?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Churchill Downs a Bet Worth Taking?

DraftKings (DKNG) posted mixed second-quarter results, surpassing earnings expectations but missing the consensus estimate for revenue. With prevailing macroeconomic risks, legal challenges, and deteriorating financial health, should investors consider DKNG a buy before the next sports betting rise? Read on to know more... DraftKings Inc. (<a href="https://stocknews.com/stock/DKNG/">DKNG</a>), a leading digital sports entertainment and gaming company, reported mixed second-quarter 2024 performance. DraftKings posted <a href="https://draftkings.gcs-web.com/news-releases/news-release-details/draftkings-reports-second-quarter-revenue-growth-26-1104-0">revenue of $1.10 billion</a>, up $230 million from the same period of 2023. Despite an impressive year-over-year growth, the company's revenue fell short of analysts' estimate of $1.12.
DKNG reported an adjusted earnings per share of $0.22, compared to the consensus estimate of $0.19. The online sports betting company raised its 2024 revenue guidance midpoint to $5.15 billion. However, DraftKings lowered its full-year adjusted EBITDA guidance midpoint from $500 million to $380 million.
Moreover, investors are shifting away from growth-dependent stocks like DKNG due to a renewed focus on macroeconomic risk factors. The recent jobs report indicated that hiring slowed significantly in July and unemployment rose to the highest in almost three years, increasing concerns of an economic slowdown and fears that the Fed waited too long to cut interest rates.
The Labor Department reported that employers <a href="https://www.reuters.com/markets/rates-bonds/size-looming-fed-rate-cuts-may-hinge-job-market-2024-08-02/">added only 114,000 jobs in July</a>, while the unemployment rate increased to 4.3% from 4.1% in June. That represents a surprising weakening in the labor market that had previously remained resilient despite the Fed's aggressive interest rate hikes in 2022 and 2023.
DraftKings' elevated valuation may expose the company to downside risk if macroeconomic concerns persist and continue to influence the broader market. Also, the company faces several challenges, including legal proceedings and the discontinuation of certain product offerings.
In July 2024, DKNG announced shutting down its non-fungible token (NFT) business citing legal developments. A federal judge allowed a class action lawsuit against DraftKings to move forward after finding plaintiffs "plausibly pled' DKNG's NFTs were unregistered securities, as reported by <a href="https://today.westlaw.com/Document/I2bafee423bc911ef8921fbef1a541940/View/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;firstPage=true">Westlaw</a>.
"After careful consideration, DraftKings has decided to discontinue Reignmakers and our NFT Marketplace, effective immediately, due to recent legal developments. This decision was not made lightly, and we believe it is the right course of action," the sports gambling company said in an email to customers.
Shares of DKNG have plunged 20.5% over the past month and 31.6% over the past year to close the last trading session at $29.85.
Let's discuss several other factors that could influence DKNG's performance in the upcoming months:
Mixed Financials
For the second quarter that ended June 30, 2024, DKNG's revenue increased 26.2% year-over-year to $1.10 billion. However, its cost of revenue grew 30% from the year-ago value to $663.41 million. The company reported a loss from operations of $32.39 million.
In addition, the company's adjusted EBITDA came in at $127.97 million, up 75.4% from the prior year's quarter. DraftKings' adjusted earnings per share rose 57.1% year-over-year to $0.22.
Mixed Analyst Estimates
Analysts expect DKNG's revenue for the third quarter (ending September 2024) to grow 40% year-over-year to $1.11 billion. However, the company is expected to report a loss per share of $0.40 for the current quarter.
Additionally, DraftKings' revenue for the fiscal year 2024 (ending December 2024) is anticipated to grow 39% year-over-year to $5.09 billion. However, the company is expected to report a loss per share of $0.28 for the ongoing year.
Dim Profitability
DKNG's trailing-12-month EBIT margin of negative 10.9% compared to the 7.82% industry average. Its trailing-12-month net income margin of negative 9.45% compared to the industry average of 4.62%. Likewise, its trailing-12-month CAPEX/Sales of 0.39% is 87.2% lower than the industry average of 3.03%.
Furthermore, the stock's trailing-12-month <a href="https://www.investopedia.com/terms/r/roce.asp">ROCE</a>, ROTC, and ROTA of negative 35.09%, negative 11.79%, and negative 9.64% are unfavorably compared to the industry averages of 11.41%, 6.14%, and 4.19%, respectively.
POWR Ratings Reflect a Bleak Outlook
DKNG's bleak fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall D rating, equating to a Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. DKNG has a D grade in Value, consistent with its lower-than-industry valuation. The stock has a D for Stability, justified by its 24-month beta of 2.91.
Within the <a href="https://stocknews.com/category/entertainment-casinos-gambling/">Entertainment-Casinos/Gambling</a> industry, DKNG is ranked #24 out of 25 stocks.
Beyond what I have stated above, we have also given DKNG grades for Value, Quality, and Sentiment. Get all DKNG ratings <a href="https://stocknews.com/stock/DKNG/">here</a>.
Bottom Line
DKNG surpassed earnings expectations and missed analysts' revenue forecast in the second quarter of fiscal 2024. The online sports betting company increased its full-year revenue guidance but lowered significantly its adjusted EBITDA outlook. Lingering macroeconomic concerns and legal challenges are eroding investor confidence in DKNG's stock.
Considering DraftKings' deteriorating financials, elevated valuation, and bleak growth prospects, it would be wise to avoid this stock now.
Stocks to Consider Instead of DraftKings Inc. (DKNG)
Given its uncertain short-term prospects, the odds of DKNG outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these three A-rated (Strong Buy) or B-rated (Buy) stocks from the <a href="https://stocknews.com/category/entertainment-casinos-gambling/">Entertainment-Casinos/Gambling</a> industry instead:
PlayAGS, Inc. (<a href="https://stocknews.com/stock/AGS/">AGS</a>)
MGM China Holdings Ltd. (<a href="https://stocknews.com/stock/MCHVY/">MCHVY</a>)
Accel Entertainment, Inc. (<a href="https://stocknews.com/stock/ACEL/">ACEL</a>)
To explore more A and B-rated gambling stocks, <a href="https://stocknews.com/category/entertainment-casinos-gambling/">click here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
DKNG shares rose $0.05 (+0.17%) in premarket trading Tuesday. Year-to-date, DKNG has declined -15.32%, versus a 12.91% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/dkng-acel-ags-mchvy-is-draftkings-a-buy-before-the-next-sports-betting-surge/>Is DraftKings a Buy Before the Next Sports Betting Surge?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is DraftKings a Buy Before the Next Sports Betting Surge?

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
PlayAGS (NYSE:<a href="https://investorplace.com/stock-quotes/ags-stock-quote/">AGS</a>) just reported results for the second quarter of 2024.<ul><li>PlayAGS reported earnings per share of 1 cent. This was below the analyst estimate for EPS of 11 cents.</li><li>The company reported revenue of $96.74 million.</li><li>This was 3.23% better than the analyst estimate for revenue of $93.71 million.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
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AGS Stock Earnings: PlayAGS Misses EPS, Beats Revenue for Q2 2024

Companies in the Consumer Cyclical sector have received a lot of coverage today as analysts weigh in on Holley (HLLY – Research Report), Playags (A...

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Small-cap stocks often have significant room to grow compared to larger companies, making them attractive for long-term growth investors. Therefore, it could be wise to keep track of small-cap growth stocks FARO Technologies, Inc. (FARO), PlayAGS, Inc. (AGS), and ChromaDex Corporation (CDXC) with 10x potential. Keep reading… While they may not have the brand recognition of large-cap stocks, small-cap companies often offer more room for expansion and market penetration. In particular, their ability to grow faster, given their smaller starting point, sets small-cap stocks apart.
Therefore, investors could consider looking into small-cap stocks, FARO Technologies, Inc. (<a href="https://stocknews.com/stock/FARO/">FARO</a>), PlayAGS, Inc. (<a href="https://stocknews.com/stock/AGS/">AGS</a>), and ChromaDex Corporation (<a href="https://stocknews.com/stock/CDXC/">CDXC</a>), with 10x potential.
The annual inflation rate in the United States rose for a second consecutive month to <a href="https://tradingeconomics.com/united-states/inflation-cpi">2.7% in November 2024</a> from 2.6% in October, in line with expectations. The rise is partly influenced by low base effects from last year. Small-cap companies often perform well during periods of economic recovery, as they tend to be more sensitive to market conditions.
Additionally, the <a href="https://www.cbsnews.com/news/federal-reserve-fed-meeting-interest-rate-cut-decision-december-2024/">Fed lowered the federal funds rate</a>, the interest rate banks charge for short-term loans, to a range of 4.25% to 4.5%. The decision comes after policymakers slashed rates by 0.5% points in September, followed by a 0.25% point drop in November. Lower interest rates can benefit small-cap stocks by improving borrowing conditions, increasing investor risk appetite, and offering the potential for outperformance. 
Considering these conducive trends, let's examine small-cap growth stocks in detail:
FARO Technologies, Inc. (<a href="https://stocknews.com/stock/FARO/">FARO</a>)
With a market capitalization of $492.606 million, FARO designs, develops, manufactures, markets, and supports software-driven three-dimensional measurement, imaging, and realization solutions worldwide. 
On October 15, 2024, FARO launched the Focus Premium Max 3D Laser Scanner, extending the scanning range to 400 meters and reducing scanning time by up to 50% with Hybrid Reality Capture. The enhanced Focus portfolio simplifies workflows for applications in construction, geospatial, and public safety.
In terms of forward EV/Sales, FARO is trading at 1.42x, which is 56.2% lower than the industry average of 3.23x. Also, its forward <a href="https://www.investopedia.com/terms/e/ev-ebitda.asp">EV/EBITDA</a> multiple of 18.84 is marginally lower than the industry average of 18.91.
FARO's net sales for the fiscal third quarter that ended September 30, 2024, amounted to $82.56 million. The company's non-GAAP gross profit grew 9.3% year-over-year to $46.36 million. Moreover, its non-GAAP net income stood at $4 million, or $0.21 per share, up 774.2% and 600%, respectively, from the year-ago values.
Analysts expect FARO's EPS for the quarter ending December 31, 2024, to increase 11.1% year-over-year to 0.40. Its revenue for the quarter ending June 30, 2025, is expected to grow 6.3% year-over-year to $87.28 million. It surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past month, the stock has gained 49.6% to close the last trading session at $26.04.
Shares of FARO have surged 42.5% over the past three months to close the last trading session at $26.04.
FARO's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its outlook. The stock has an overall A rating, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.  
FARO also has an A grade for Growth and a B for Momentum, Value, Sentiment, and Quality. It is ranked #3 out of 41 stocks in the B-rated <a href="https://stocknews.com/category/software-business/">Software - Business</a> industry. 
To see additional POWR Ratings for Stability, click <a href="https://stocknews.com/stock/FARO/">here</a>.
PlayAGS, Inc. (<a href="https://stocknews.com/stock/AGS/">AGS</a>)
AGS designs and supplies gaming products and services for the gaming industry in the United States and internationally. It operates through three segments: Electronic Gaming Machines (EGM), Table Products, and Interactive Games (Interactive).
In terms of forward EV/EBIT, AGS is trading at 13.69x, which is 12.1% lower than the industry average of 15.58x. Also, its forward EV/EBITDA multiple of 5.58 is 46.6% lower than the industry average of 10.44.
In the third quarter that ended on September 30, 2024, AGS' total revenues increased 11% year-over-year to $99.17 million. Its income from operations stood at $17.46 million. The company's net income came in at $2.43 million compared to a net loss of $156 thousand.
Analysts expect AGS' revenue and EPS for the fiscal fourth quarter (ended December 2024) to increase 6.7% and significantly year-over-year to $100.48 million and $0.17, respectively. Also, the company has topped the consensus revenue estimate in each of the four trailing quarters, which is remarkable.
The stock gained 31.3% over the past nine months to close the last trading session at $11.54.
AGS' POWR Ratings reflect robust prospects. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. AGS has an A grade for Growth and a B for Value, Sentiment, and Quality. It is ranked #2 out of 27 stocks in the <a href="https://stocknews.com/category/entertainment-casinos-gambling/">Entertainment - Casinos/Gambling</a> industry. 
Beyond what is stated above, we've also rated AGS for Sentiment and Quality. Get all the stock's ratings <a href="https://stocknews.com/stock/PSMT/">here</a>.
ChromaDex Corporation (<a href="https://stocknews.com/stock/CDXC/">CDXC</a>)
CDXC operates as a bioscience company focusing on developing healthy aging products. The company operates through three segments: Consumer products; Ingredients; and Analytical Reference Standards and Services. 
For the third quarter ended September 30, 2024, CDXC's net sales increased 5.5% year-over-year to $25.58 million. Its operating income came in at $1.60 million compared to an operating loss of $1.15 million. The company's net income was reported at $1.88 million and $0.02, compared to net loss and loss per share of $959 thousand and $0.01, respectively.
Analysts expect CDXC's revenue for the fiscal fourth quarter (ended December 2024) to increase 25.1% year-over-year to $26.51 million. Also, the company has topped the consensus EPS estimate in each of the four trailing quarters, which is remarkable.
Over the past six months, CDXC's stock has gained 112.4% to close the last trading session at $5.48.
CDXC's POWR Ratings reflect its bright outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
CDXC has an A grade for Growth, Sentiment, and Quality. It is ranked #8 out of 81 stocks in the <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry.
For additional CDXC's Stability, Momentum, and Value, click <a href="https://stocknews.com/stock/CDXC/">here</a>.  
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
FARO shares were trading at $26.65 per share on Friday afternoon, up $0.61 (+2.34%). Year-to-date, FARO has gained 5.09%, versus a 1.02% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/faro-ags-cdxc-3-small-cap-growth-stocks-with-10x-potential/>3 Small-Cap Growth Stocks With 10x Potential</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Small-Cap Growth Stocks With 10x Potential

ACEL

BALY

BKNG

BRAG

CDRO

CDXC

CHDN

CNTY

DKNG

DXCM

EVRI

FARO

FLUT

FNKO

GAMB

GDEN

GENI

GIFLF

GIFOF

GIKLY

GLPI

GOLD

GRFS

HLLY

HOOD

INSI

INTC

JAKK

KRNGF

KRNGY

LAAOF

MCHVY

MCRI

MLCO

NESRF

NSTYY

PARA

PARAA

SGHC

SRAD

TRUBF

USFR

VGLT

VRNOF

WYNN

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Press Releases

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates DM, AGS, GRDI on Behalf of Shareholders

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates AGS, SQSP, ATRI, FREE on Behalf of Shareholders

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates ATRI, SRDX, AGS, VAPO on Behalf of Shareholders

PLAYAGS INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of PlayAGS, Incorporated - AGS

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates SRCL, IBTX, AGS, SRDX on Behalf of Shareholders

PlayAGS Stockholders Approve Acquisition By Brightstar Capital Partners

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AGS Recognized as a 'Best and Brightest Company to Work For' in the Nation and Atlanta; Named a 'Top Workplace' in Multiple States

Yes, Chef! AGS is Cookin' Up A Feast of Epic Proportions at G2E 2024

AGS Announces Expiration of Hart-Scott-Rodino Act Waiting Period for Acquisition by Affiliates of Brightstar Capital Partners

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