Yahoo Finance Boyd Gaming Corporation (BYD) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Boyd Gaming (BYD)? Shares have been on the move with the stock up 10% over the past month. The stock hit a new 52-week high of $71.69 in the previous session. Boyd Gaming has gained 30.1% since the start of the year compared to the 10% move for the Zacks Consumer Discretionary sector and the 27.9% return for the Zacks Gaming industry.
What's Driving the Outperformance?
The stock has an impressive 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 April 25, 2023, Boyd reported EPS of $1.71 versus consensus estimate of $1.51.
For the current fiscal year, Boyd is expected to post earnings of $6.24 per share on $3.62 billion in revenues. This represents a 2.63% change in EPS on a 1.94% change in revenues. For the next fiscal year, the company is expected to earn $6.48 per share on $3.63 billion in revenues. This represents a year-over-year change of 3.95% and 0.09%, respectively.
Valuation Metrics
Boyd 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.
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.
Boyd has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.1X. On a trailing cash flow basis, the stock currently trades at 7.5X versus its peer group's average of 10X. Additionally, the stock has a PEG ratio of 1.67. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Boyd currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Boyd meets the list of requirements. Thus, it seems as though Boyd shares could have potential in the weeks and months to come.
How Does BYD Stack Up to the Competition?
Shares of BYD 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 International Game Technology (IGT). IGT has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. International Game Technology beat our consensus estimate by 25.64%, and for the current fiscal year, IGT is expected to post earnings of $1.57 per share on revenue of $4.18 billion.
Shares of International Game Technology have gained 0.4% over the past month, and currently trade at a forward P/E of 17.19X and a P/CF of 4.97X.
The Gaming industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BYD and IGT, even beyond their own solid fundamental situation.
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Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
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