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Bear of the Day: Bally's (BALY)

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There are a handful of industries out there that I have flat out been cheering for. These are industries which were nearly crippled during the pandemic. As the world has slowly and cautiously crawled from beneath the weight of COVID, these industries have mounted comebacks. Along with the comebacks, earnings expectations have returned. That means these stocks better deliver the goods, or else. Analysts will see disappointing results as opportunities to drop their ratings and cut earnings estimates.

One way to uncover stocks with estimates moving in the wrong direction is by using the Zacks Rank. Stocks which are not in the good graces of the Zacks Rank will have the weakest earnings trends. Analysts will be cutting their estimates rather than pushing them to the upside.

Today’s Bear of the Day is a stock in the Hotels and Motels industry which ranks in the Bottom 34% of our Zacks Industry Rank. It’s Zacks Rank #5 (Strong Sell) Bally’s (BALY - Free Report) . Bally's Corporation owns and operates gaming and racing facilities in the United States. Its gaming and racing facilities include slot machines and various casino table games, and restaurant and hotel facilities. 

Analysts have been lowering the bar for Bally’s. That is the main reason for the unfavorable Zacks Rank. Over the last sixty days, three analysts have cut expectations for the current year while next year two have cut and one has raised. The bearish sentiment has dropped our Zacks Consensus Estimate for the current year from $3.00 all the way down to $1.48 while next year’s number is off from $3.81 to $2.30.

The growth numbers for Bally’s are still optimistic even with the negative moves. Current year EPS growth still calls for 922%, albeit that is a misleading comparison given the pandemic’s impact. Next year, the company is forecast to deliver 55% growth. A good move in a positive direction as well. Sales growth this year is forecast at 263% while next year is slated to bounce up to 97%.

There are some stocks within the Hotels and Motels industry which are currently in the good graces of our Zacks Rank. Those stocks include Zacks Rank #1 (Strong Buy) Hilton Grand Vacations (HGV - Free Report) and Zacks Rank #2 (Buy) Intercontinental Hotels (IHG - Free Report) .


In-Depth Zacks Research for the Tickers Above


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Intercontinental Hotels Group (IHG) - free report >>

Hilton Grand Vacations Inc. (HGV) - free report >>

Bally's Corporation (BALY) - free report >>

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