The London Company released its investor letter for the second quarter of 2025, reporting a double-digit surge in US equities. The mid-cap composite rose 5.7%, falling short of the Russell Midcap Index’s 8.5% increase.

One highlighted stock in the letter was Churchill Downs Incorporated (NASDAQ:CHDN), which saw a one-month return of 5.38%. Its shares lost 22.96% over the last 52 weeks, closing at $110.60 per share on July 29, 2025.

Churchill Downs Incorporated (NASDAQ:CHDN) has underperformed due to various factors, but The London Company sees potential in its cash-generative assets and good capital allocation practices. The company reported record net revenue of $934 million and adjusted EBITDA of $451 million in the second quarter of 2025.

Despite Churchill Downs Incorporated’s potential, The London Company believes certain AI stocks offer greater upside potential and less downside risk. For investors seeking undervalued AI stocks, they recommend checking out their free report on the best short-term AI stock.

Read more at Yahoo Finance: Here’s Why Churchill Downs Incorporated (CHDN) Traded Down in Q2