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Is Boyd Gaming (BYD) a Great Value Stock Right Now?

Zacks Equity Research
MGIC (MTG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

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. The stock holds a P/E ratio of 13.18, while its industry has an average P/E of 15.22. Over the past 52 weeks, BYD's Forward P/E has been as high as 33.73 and as low as 13.18, with a median of 24.94.

BYD is also sporting a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BYD's industry currently sports an average PEG of 1.03. Within the past year, BYD's PEG has been as high as 1.67 and as low as 0.88, with a median of 1.49.

Another notable valuation metric for BYD is its P/B ratio of 2.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BYD's current P/B looks attractive when compared to its industry's average P/B of 3.07. Over the past 12 months, BYD's P/B has been as high as 4.08 and as low as 2.39, with a median of 3.52.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BYD has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.56.

Finally, investors should note that BYD has a P/CF ratio of 7.02. 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. BYD's current P/CF looks attractive when compared to its industry's average P/CF of 7.03. BYD's P/CF has been as high as 12.07 and as low as 7.02, with a median of 9.92, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Boyd Gaming is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BYD feels like a great value stock at the moment.


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