Should Value Investors Buy Boyd Gaming (BYD) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Boyd Gaming (BYD). BYD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that BYD has a P/B ratio of 4.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.03. Over the past 12 months, BYD's P/B has been as high as 5.20 and as low as 3.31, with a median of 4.06.
Finally, we should also recognize that BYD has a P/CF ratio of 8.13. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.50. Within the past 12 months, BYD's P/CF has been as high as 10.93 and as low as 6.12, with a median of 7.59.
Century Casinos (CNTY) may be another strong Gaming stock to add to your shortlist. CNTY is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, Century Casinos holds a P/B ratio of 1.94 and its industry's price-to-book ratio is 8.03. CNTY's P/B has been as high as 2.65, as low as 1.21, with a median of 1.53 over the past 12 months.
These are just a handful of the figures considered in Boyd Gaming and Century Casinos's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BYD and CNTY is an impressive value stock right now.
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Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
Century Casinos, Inc. (CNTY) : Free Stock Analysis Report
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