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Boyd Gaming (BYD) Rallies 46% in 3 Months: What's Driving It?

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Boyd Gaming Corporation (BYD - Free Report) is poised to benefit from its interactive gaming platform and FanDuel Group partnership. Also, increased focus on online betting offerings and portfolio expansion bodes well.

In the past three months, shares of Boyd Gaming have gained 46.1% compared with the industry’s 12.9% growth.

Let’s take a look at the company’s earnings estimate revision in order to get a clear picture of what analysts are thinking regarding the company’s future. In the past 30 days, earnings estimates for current quarter have been revised upward by 157.9% to 49 cents.

Factors Driving Growth

Boyd Gaming has been witnessing solid performance by the interactive gaming platform. Thanks to the strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry.

Notably, the company continues to take initiatives to expand its online betting offerings. During the third quarter of 2020, the company along with FanDuel Group launched mobile sports betting products in Illinois and Iowa.

Apart from this, the company collaborated with Aristocrat Technologies (in September 2020) for the launch of a new digital initiative, namely, B Connected Mobile. The application is likely to boost customers’ experience along with frictionless access to its range of online, social and mobile gaming brands. Moreover, it initiated the launch of cashless wallet technology in Northern Indiana.

Going forward, the company plans to integrate the wallet into B Connected mobile, thereby expanding the services to additional amenities and Boyd Gaming properties. However, these are subject to regulatory approvals.

Meanwhile, the company continues to expand its portfolio by strengthening current operations and growing through capital investment as well as other strategic measures. The company extensively depends on acquisitions as a strategy to expand its brand presence.

Nevertheless, the company stated that it has enough liquidity to survive the pandemic scenario for the next 12 months. At the end of the third quarter, Boyd Gaming had cash and cash equivalents of $506 million as of Sep 30, compared with $1.31 billion as on Jun 30, 2020. However, total debt during the third quarter amounted to $4.04 billion, compared with $4.98 billion as reported in second-quarter 2020. Meanwhile, the debt-to-capitalization ratio at the end of third quarter was 0.8, indicating manageable debt levels.

Zacks Rank & Other Key Picks

Boyd Gaming currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other top-ranked stocks in the same space include Golden Entertainment, Inc. (GDEN - Free Report) , Monarch Casino & Resort, Inc. (MCRI - Free Report) and Penn National Gaming, Inc. (PENN - Free Report) , each carrying a Zacks Rank #2.

Earnings for Golden Entertainment, Monarch Casino and Penn National in 2021 are likely to surge 91.1%, 179.3% and 133.2%, respectively.

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