{"id":274,"date":"2021-05-20T19:20:44","date_gmt":"2021-05-20T16:20:44","guid":{"rendered":"https:\/\/xxbet-company.com\/churchill-downs-draftkings-could-win-in-russell-rebalancing\/"},"modified":"2021-05-20T19:20:44","modified_gmt":"2021-05-20T16:20:44","slug":"churchill-downs-draftkings-could-win-in-russell-rebalancing","status":"publish","type":"post","link":"https:\/\/xxbet-company.com\/ja\/churchill-downs-draftkings-could-win-in-russell-rebalancing\/","title":{"rendered":"Churchill Downs, DraftKings Could Win in Russell Rebalancing"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_34 counter-flat ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">\u76ee\u6b21<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1'><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/xxbet-company.com\/ja\/churchill-downs-draftkings-could-win-in-russell-rebalancing\/#Why_Russell_Rebalancing_Matters\" title=\"Why Russell Rebalancing Matters\">Why Russell Rebalancing Matters<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/xxbet-company.com\/ja\/churchill-downs-draftkings-could-win-in-russell-rebalancing\/#No_Guarantees_of_Upside\" title=\"No Guarantees of Upside\">No Guarantees of Upside<\/a><\/li><\/ul><\/nav><\/div>\n<p>Churchill Downs (NASDAQ:CHDN) and DraftKings (NASDAQ:DKNG) are among the stocks that could be affected by the annual rebalancing of FTSE Russell equity indexes.<\/p>\n<figure aria-describedby=\"caption-attachment-173810\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"wp-image-173810 lazyload\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-142x80.jpg?x38396\" data-src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-142x80.jpg?x38396\" alt=\"Russell rebalancing\" width=\"1200\" height=\"675\" data-srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-142x80.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-1024x576.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-768x432.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-1536x864.jpg 1536w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE.jpg 1600w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" data- title=\"\"><img loading=\"lazy\" class=\"wp-image-173810\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-142x80.jpg?x38396\" alt=\"Russell rebalancing\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-142x80.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-1024x576.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-768x432.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE-1536x864.jpg 1536w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/NYSE.jpg 1600w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" title=\"\"><figcaption class=\"text-description\">Traders on the floor of the New York Stock Exchange. Churchill Downs and DraftKings could be affected by Russell\u2019s rebalancing. (Image: <em>ABC News<\/em>)<\/figcaption><\/figure>\n<p>In a recent call with clients, Jefferies highlighted seven consumer discretionary names, including the <a href=\"https:\/\/www.casino.org\/news\/churchill-stock-decline-not-justified-upside-coming-says-analyst\/\" rel=\"nofollow noopener\" target=\"_blank\">pair of gaming equities<\/a>, that could be on the move as a slew of benchmarks run by FTSE Russell are altered to reflect changes in components\u2019 market values. The company is the provider behind well-known indexes, such as the broad market Russell 3000, the small-cap Russell 2000, and the Russell 1000.<\/p>\n<p><strong>This month marks the start of Russell rebalancing season, as stocks\u2019 places in the provider\u2019s various equity gauges are determined based on May 7 closing prices, market caps, and other inclusion criteria. That includes Churchill Downs and DraftKings.<\/strong><\/p>\n<p>\u201cJune is the month that the preliminary reconstitution portfolio is communicated to the marketplace. Beginning on June 4, preliminary lists are communicated to the marketplace and updates are provided on June 11, 18, and 25. The newly reconstituted indexes take effect after the market close on June 25,\u201d according to FTSE Russell.<\/p>\n<p>Like other gaming stocks, the racetrack operator and the daily fantasy sports (DFS) provider are slumping. <a href=\"https:\/\/www.casino.org\/news\/draftkings-stock-hammered-as-three-analysts-cut-price-targets\/\" rel=\"nofollow noopener\" target=\"_blank\">But DraftKings\u2019 slide<\/a> is particularly pronounced. That name is off almost 22 percent over the past month, potentially signaling it will gain some benefit from Russell using its May 7 market capitalization, which was higher than today\u2019s mark of $16.44 billion.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Russell_Rebalancing_Matters\"><\/span>Why Russell Rebalancing Matters<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Jefferies estimates that as a result of the Russell rebalancing, growth funds may have to boost exposure to large- and mid-cap consumer cyclical stocks by two percent and five percent, respectively.<\/p>\n<div class=\"callout\">\n<p>Both Churchill Downs and DraftKings are considered growth stocks, and all consumer-facing gaming names reside in the consumer discretionary sector. The racetrack operator is part of the Russell 2000 and the Russell 2000 growth indexes \u2014 both small-cap benchmarks \u2014 but its market value on May 7 was firmly in mid-cap territory. That could signal that the stock is poised for entry into the equivalent mid-cap and mid-cap gauges.<\/p>\n<\/div>\n<p>Slumping DraftKings has been a standalone public company <a href=\"https:\/\/www.casino.org\/news\/draftkings-stock-extends-slide-despite-q1-beat-upped-guidance\/\" rel=\"nofollow noopener\" target=\"_blank\">for just over a year<\/a>, earning varying treatment from index providers over that time. Some benchmark issuers classify the sportsbook operator as a mid-cap name, while others include it in large-cap indexes.<\/p>\n<p>It remains to be seen how FTSE Russell treats DraftKings post-rebalancing. But given the stock\u2019s flirtation with a market capitalization of $20 billion around May 7, it could be a credible candidate for inclusion in the Russell 1000 and Russell 1000 Growth indexes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"No_Guarantees_of_Upside\"><\/span>No Guarantees of Upside<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Jefferies mentions Churchill Downs and DraftKings as \u201cbuy\u201d ideas on the Russell rebalancing, and the thesis is solid.<\/p>\n<p><strong>Globally, trillions of dollars are benchmarked to the provider\u2019s gauges, and index promotions could put Churchill and DraftKings in front of a wider audience of professional investors.<\/strong><\/p>\n<p>However, index elevations aren\u2019t guarantees of upside. For example, Penn National Gaming (NASDAQ:PENN) has been in a tailspin <a href=\"https:\/\/www.casino.org\/news\/caesars-penn-national-rally-on-sp-500-inclusion\/\" rel=\"nofollow noopener\" target=\"_blank\">following March news<\/a> that it was joining the S&#038;P 500 \u2013 the most widely followed equity index in the world.<\/p>\n<p>The post <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\/russell-rebalancing-could-be-catalyst-for-churchill-draftkings\/\" target=\"_blank\">Churchill Downs, DraftKings Could Win in Russell Rebalancing<\/a> appeared first on <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\" target=\"_blank\">Casino.org<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Churchill Downs (NASDAQ:CHDN) and DraftKings (NASDAQ:DKNG) are among the stocks that could be affected by the annual rebalancing of FTSE Russell equity indexes. Traders on the floor of the New York Stock Exchange. Churchill Downs and DraftKings could be affected by Russell\u2019s rebalancing. (Image: ABC News) In a recent call with clients, Jefferies highlighted seven consumer discretionary names, including the pair of gaming equities, that could be on the move as a slew of benchmarks run by FTSE Russell are altered to reflect changes in components\u2019 market values. The company is the provider behind well-known indexes, such as the broad market Russell 3000, the small-cap Russell 2000, and the Russell <a href=\"https:\/\/xxbet-company.com\/ja\/churchill-downs-draftkings-could-win-in-russell-rebalancing\/\" class=\"more-link\">&#8230;<\/a><\/p>","protected":false},"author":1,"featured_media":275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/posts\/274"}],"collection":[{"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/comments?post=274"}],"version-history":[{"count":0,"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/posts\/274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/media\/275"}],"wp:attachment":[{"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/media?parent=274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/categories?post=274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xxbet-company.com\/ja\/wp-json\/wp\/v2\/tags?post=274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}