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A strong stock as of late has been Accel Entertainment (ACEL)<\/b>. Shares have been marching higher, with the stock up 13.7% over the past month. The stock hit a new 52-week high of $14 in the previous session. Accel Entertainment has gained 15.7% since the start of the year compared to the -8.1% move for the Zacks Consumer Discretionary sector and the -18.4% return for the Zacks Gaming industry.<\/p>\nWhat’s Driving the Outperformance? <\/h2>\n
The stock has a great record of positive earnings surprises, as it hasn’t missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 5, 2026, Accel Entertainment reported EPS of $0.17 versus consensus estimate of $0.16 while it beat the consensus revenue estimate by 2.41%.<\/p>\n
For the current fiscal year, Accel Entertainment is expected to post earnings of $0.7 per share on $1.42 in revenues. This represents a 16.67% change in EPS on a 6.35% change in revenues.<\/p>\n
Accel Entertainment may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.<\/p>\n
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.<\/p>\n
Accel Entertainment has a Value Score of A. The stock’s Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.<\/p>\n
In terms of its value breakdown, the stock currently trades at 18.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.2X. On a trailing cash flow basis, the stock currently trades at 8.3X versus its peer group’s average of 9.1X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Accel Entertainment an interesting choice for value investors.<\/p>\n
We also need to consider the stock’s Zacks Rank, as this is even more important than the company’s VGM Score. Fortunately, Accel Entertainment currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.<\/p>\n<\/p><\/div>\n
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Accel Entertainment passes the test. Thus, it seems as though Accel Entertainment shares could have potential in the weeks and months to come.<\/p>\n
Shares of ACEL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Churchill Downs, Incorporated (CHDN)<\/b>. CHDN has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.<\/p>\n
Earnings were strong last quarter. Churchill Downs, Incorporated beat our consensus estimate by 14.15%, and for the current fiscal year, CHDN is expected to post earnings of $7.32 per share on revenue of $3.02 billion.<\/p>\n
Shares of Churchill Downs, Incorporated have gained 0.2% over the past month, and currently trade at a forward P\/E of 11.88X and a P\/CF of 8.92X.<\/p>\n
The Gaming industry may rank in the bottom 62% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ACEL and CHDN, even beyond their own solid fundamental situation.<\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a><\/p>\n Accel Entertainment, Inc. (ACEL) : Free Stock Analysis Report<\/a><\/p>\n Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report<\/a><\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a><\/p>\n