What Does Boyd Gaming Corporation's (NYSE:BYD) Share Price Indicate?

Boyd Gaming Corporation (NYSE:BYD), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$72.81 at one point, and dropping to the lows of US$63.73. 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$64.75 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

Is Boyd Gaming Still Cheap?

Good news, investors! Boyd Gaming is still a bargain right now. According to my valuation, the intrinsic value for the stock is $97.42, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Boyd Gaming’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Boyd Gaming generate?

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. However, with a negative profit growth of -10% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Boyd Gaming. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although BYD is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to BYD, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on BYD for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to dive deeper into Boyd Gaming, you'd also look into what risks it is currently facing. For instance, we've identified 3 warning signs for Boyd Gaming (1 shouldn't be ignored) you should be familiar with.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.