Is Boyd Gaming (BYD) Stock Currently Undervalued? – October 5, 2021
While the proven Zacks Rank emphasizes earnings estimates and revisions of estimates to find solid stocks, we also know that investors tend to develop their own individual strategies. With that in mind, we always look at trends in value, growth, and momentum to uncover great companies.
Given these trends, value investing is clearly one of the most preferred ways to find solid stocks in any type of market. Value investors use a variety of methods, including proven valuation metrics, to find these stocks.
In addition to the Zacks Rankings, investors can also use our innovative style score system to find stocks with specific characteristics. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks ranks and “A” ratings for value will be some of the highest quality value stocks on the market today.
Boyd Gaming (BYD – Free Report) is a stock that many investors are watching right now. BYD currently sports a Zacks rating of # 2 (Buy) and an A for value.
Another notable valuation metric of BYD is its P / N ratio of 5.23. The P / B ratio is used to compare the market value of a stock with its book value, which is defined as total assets minus total liabilities. This company’s current P / B looks strong compared to its industry’s average P / B of 6.72. Over the past 52 weeks, BYD’s P / B has been as high as 6.50 and as low as 3.27, with a median of 5.
Value investors also use the P / S ratio. The P / S ratio is calculated as the price divided by the sales. Some people prefer this measure because sales are more difficult to manipulate on an income statement. This means that it could be a truer performance indicator. BYD has a P / S ratio of 2.52. This compares to its industry average P / S of 3.54.
These are just a few of the key metrics included in Boyd Gaming’s strong Value rating, but they help show that the stock is likely undervalued right now. Considering the strength of its earnings outlook, BYD currently looks like an impressive value stock.