This gaming stock has lost 115% of its value since the coronavirus has shut the door on entertainment. But its fundamentals are good, it pays a 2.3% annual dividend, paid quarterly, and it looks very undervalued.
Boyd Gaming Corporation (BYD)
From Upside
Boyd Gaming Corporation operates 29 properties in 10 states, spanning roughly 77 million square feet of casino space, 38,000 gaming machines, and more than 11,000 hotel rooms. The company has decent growth prospects, reflecting healthy same-store sales, contributions from acquisitions, and a burgeoning market for sports wagering.
In the December quarter, per-share earnings surged 56% to $0.50, topping the consensus by $0.05. Revenue rose 5% and exceeded expectations.
Boyd looks attractively valued with a Quadrix® Value score of 70, reflecting solid ranks for price/free cashflow and price/sales ratios. Shares trade at 15 times estimated current-year earnings, versus a median of 27 for gaming stocks in the S&P 1500 Index.
For 2020, Wall Street expects per-share earnings of $2.02, up 13%. Analyst profit targets are climbing, lifting the Earnings Estimates score to 84 and Overall score to 98. Boyd is being
started as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, March 2020