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Boyd Gaming Corporation (BYD) - free report >>
DoubleDown Interactive Co., Ltd. Sponsored ADR (DDI) - free report >>
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Bear of the Day: Boyd Gaming (BYD)
The market has been under extreme pressure since topping out at the end of July. Small caps have bled in the headlines but it’s been ugly everywhere. Over the last three months, not a single sector is in the green. Leading the way down, Real Estate and Utilities are off 16.59% and 14.07% respectively.
With so many stocks near lows, it can feel like the dartboard approach will work…eventually. One way to put your money in the best position to succeed is by investing in stocks with strong earnings trends and minimizing exposure to stocks with weak earnings trends. One way to avoid stocks with weak trends is by avoid stocks which are not in the good graces of our Zacks Rank.
One such stock is today’s Bear of the Day. It’s Zacks Rank #5 (Strong Sell) Boyd Gaming ((BYD - Free Report) ). Boyd is a huge gaming company that owns and operates gaming entertainment properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania.
The reason for the unfavorable Zacks Rank is that six analysts have cut their estimates for the current year and next year over the last week. That bearish sentiment has cut our Zacks Consensus Estimate for the current year from $6.36 to $6.14 with next year’s number off from $6.59 to $6.12. That means next year is now forecast to contract earnings by 35 bps.
The Gaming industry ranks in the Bottom 40% of our Zacks Industry Rank. There are a few names in the industry with stronger earnings trends. These include Zacks Rank #1 (Strong Buy) Light & Wonder ((LNW - Free Report) ) as well as Zacks Rank #2 (Buy) DoubleDown Interactive ((DDI - Free Report) ).