If You Invested $1000 in Boyd Gaming a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Boyd Gaming (BYD) ten years ago? It may not have been easy to hold on to BYD for all that time, but if you did, how much would your investment be worth today?
Boyd Gaming's Business In-Depth
With that in mind, let's take a look at Boyd Gaming's main business drivers.
Founded in 1975 and headquartered in Las Vegas, Boyd Gaming Corporation is a multi-jurisdictional gaming company. It owns and operates gaming entertainment properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania. As of Jul 28, 2020, the company owns and operates 29 properties, offering 1.77 million square feet of casino space, 36,977 slot machines, 809 table games and 11,090 hotel rooms. It also has 320 food and beverage outlets.
Boyd Gaming reports its operating results under the following segment:
Las Vegas Locals (25.4% of total revenues in first-quarter 2021): This segment consists of nine casinos and mainly targets the people of Las Vegas metropolitan area. The segment competes directly with other locals casinos and gaming companies.
Downtown Las Vegas (2.9%): This segment consists of three casinos, which competes with eight other casinos in the area.
Midwest and South (71.7%): The segment has four land-based casinos, six dockside riverboat casinos and four barge-based casinos. These casinos operate in nine states in the Midwest and southern United States.
During 2019, Boyd Gaming completed several transactions to improve its long-term financial position. In the fourth quarter of 2019, the company issued $1 billion aggregate principal amount due December 2027. The proceeds from the debt issuance were used to finance the redemption of all of its outstanding 6.875% senior notes due 2023 and prepay a portion of Refinancing Term B Loans.
One of the notable initiatives by Boyd Gaming has been regarding the legalization of sports gambling. In July 2018, the company entered a partnership with MGM Resorts International, under which the companies have the opportunity to offer online and mobile gaming platforms, including sports betting, casino gaming and poker.
In 2018, Boyd Gaming opened sports books at its two Mississippi properties, IP Casino Resort Spa (“IP”) in Biloxi, and Sam’s Town Hotel & Gambling Hall in Tunica. It also entered a partnership with FanDuel Group to pursue sports betting and online gaming opportunities across the United States.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Boyd Gaming a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2011 would be worth $7,399.33, or a 639.93% gain, as of May 3, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 206.63% and the price of gold increased 10.53% over the same time frame in comparison.
Analysts are anticipating more upside for BYD.
Shares of Boyd Gaming have outperformed the industry so far this year. The company reported decent first-quarter 2021 results, with the top and the bottom line beating the Zacks Consensus Estimate. The metrics not only surpassed the Zacks Consensus Estimate for the fourth straight quarter but also increased on a year-over-year basis. Notably, the company is benefitting from initiatives to strengthen current operations and growth through capital investment as well as other strategic measures. Moreover, expansion of online betting offerings along with FanDuel partnership bode well. Going forward, the company is optimistic about online gaming prospects in Ohio, Louisiana, Missouri and Kansas. Also signs of improvement is being noticed in its destination business. Meanwhile, earnings estimates for 2021 have moved up in the past 30 days.
Shares have gained 8.03% over the past four weeks and there have been 8 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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