At US$49.62, Is It Time To Put Boyd Gaming Corporation (NYSE:BYD) On Your Watch List?

Published
July 11, 2022
NYSE:BYD
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Boyd Gaming Corporation (NYSE:BYD), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$66.64 and falling to the lows of US$49.05. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Boyd Gaming's current trading price of US$49.62 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Boyd Gaming’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Boyd Gaming

What is Boyd Gaming worth?

Good news, investors! Boyd Gaming is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 10.36x is currently well-below the industry average of 17.39x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Boyd Gaming’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Boyd Gaming look like?

earnings-and-revenue-growth
NYSE:BYD Earnings and Revenue Growth July 11th 2022

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 22% over the next couple of years, the future seems bright for Boyd Gaming. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since BYD is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on BYD for a while, now might be the time to enter the stock. Its buoyant future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BYD. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you'd like to know more about Boyd Gaming as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Boyd Gaming has 3 warning signs and it would be unwise to ignore them.

If you are no longer interested in Boyd Gaming, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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