Yahoo Finance If You Invested $1000 in Boyd Gaming a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Boyd Gaming (BYD) ten years ago? It may not have been easy to hold on to BYD for all that time, but if you did, how much would your investment be worth today?
Boyd Gaming's Business In-Depth
With that in mind, let's take a look at Boyd Gaming's main business drivers.
Founded in 1975 and headquartered in Las Vegas, Boyd Gaming Corporation is a multi-jurisdictional gaming company. It owns and operates gaming entertainment properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania. As of Dec 31, 2021, the company owns and operates 28 properties, offering 1.69 million square feet of casino space, 31,635 slot machines, 686 table games and 10,751 hotel rooms.
Boyd Gaming reports its operating results under the following segment:
Las Vegas Locals (26.3% of total revenues in 2021): This segment consists of nine casinos and mainly targets the people of Las Vegas metropolitan area. The segment competes directly with other locals casinos and gaming companies.
Downtown Las Vegas (4.6%): This segment consists of three casinos, which competes with eight other casinos in the area.
Midwest and South (69.1%): The segment has four land-based casinos, six dockside riverboat casinos, three racinos and four barge-based casinos. These casinos operate in nine states in the Midwest and southern United States.
During 2019, Boyd Gaming completed several transactions to improve its long-term financial position. In the fourth quarter of 2019, the company issued $1 billion aggregate principal amount due December 2027. The proceeds from the debt issuance were used to finance the redemption of all of its outstanding 6.875% senior notes due 2023 and prepay a portion of Refinancing Term B Loans.
One of the notable initiatives by Boyd Gaming has been regarding the legalization of sports gambling. In July 2018, the company entered a partnership with MGM Resorts International, under which the companies have the opportunity to offer online and mobile gaming platforms, including sports betting, casino gaming and poker.
In 2018, Boyd Gaming opened sports books at its two Mississippi properties, IP Casino Resort Spa (“IP”) in Biloxi, and Sam’s Town Hotel & Gambling Hall in Tunica. It also entered a partnership with FanDuel Group to pursue sports betting and online gaming opportunities across the United States.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Boyd Gaming ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in December 2012 would be worth $11,067.27, or a 1,006.73% gain, as of December 2, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 187.86% and the price of gold went up 1.08% over the same time frame.
Analysts are anticipating more upside for BYD.
Shares of Boyd Gaming have outperformed the industry in the past year. The company reported third-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Initiatives to strengthen current operations and growth through capital investment and other strategic measures bode well. The expansion of online betting offerings and the FanDuel partnership is also beneficial. Going forward, the company is optimistic about online gaming prospects in Ohio. The company anticipates EBITDAR (from its online operations) to exceed $30 million in 2022 on the back of growth opportunities in new markets and digital opportunities in online casino gaming. The company considers the local market in Las Vegas as a major driver for its portfolios.
Shares have gained 11.48% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
