We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boyd Gaming (BYD) Up 40% in 3 Months: More Room to Run?
Read MoreHide Full Article
Boyd Gaming Corporation (BYD - Free Report) is poised to benefit from its interactive gaming platform, FanDuel Group partnership and portfolio expansion. Also, increased focus on its online betting offerings bodes well. In the past three months, shares of the company have increased 39.9% compared with the industry’s 23.5% growth. However, dismal traffic due to the coronavirus pandemic is a concern.
Let us discuss the factors highlighting why investors should hold on to the stock for the time being.
Factors Likely to Drive Growth
Boyd Gaming’s focus on interactive gaming platform bodes well. Owing to the strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry. In 2020, online gaming contributed more than $10 million to EBITDAR backed by FanDuel's mobile sports operation in Pennsylvania, Illinois, Indiana, and Iowa. For 2021, the company expects EBITDAR to be more than $20 million.
During fourth-quarter 2020, the company also collaborated with Aristocrat Technologies for the roll out of a new cashless digital wallet – BoydPay, in Indiana and Ohio. Going forward, the company plans to integrate the wallet into its online products, thereby expanding the services to additional amenities and Boyd Gaming properties. Also, the company is optimistic about online gaming prospects in Louisiana, Kansas, Missouri and Ohio.
Meanwhile, the company continues to expand its portfolio by strengthening current operations and growing through capital investment as well as other strategic measures. During the fourth quarter, the company stated to have started work on Wilton Rancheria resorts that is positioned as the closest Class 3 casino to Downtown Sacramento in the South Bay area. With a tentative opening scheduled by the second half of 2022, the company is optimistic with respect to growth.
Nevertheless, the company stated that it has enough liquidity to survive a zero-revenue scenario for the next 12 months. At the end of the fourth quarter, Boyd Gaming had cash and cash equivalents of $519.2 million compared with $506 million as on Sep 30, 2020. Although, total debt during the fourth quarter amounted to $3.95 billion compared with $4.04 billion as on third-quarter 2020, the debt-to-capitalization ratio at the end of the fourth quarter came in at 0.8x, almost flat sequentially.
Concerns
Boyd Gaming’s financials in 2020 were negatively impacted by the coronavirus pandemic. Even though the company resumed operations at majority of its gaming properties, traffic is expected to be affected by the social-distancing protocols. Owing to the uncertainty of the crisis, the company suspended its share repurchase programs. Also, further chances of temporary shutdowns cannot be ruled out.
Meanwhile, heightened competition with new entries in the already high-supply market is a headwind for the company.
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Image: Bigstock
Boyd Gaming (BYD) Up 40% in 3 Months: More Room to Run?
Boyd Gaming Corporation (BYD - Free Report) is poised to benefit from its interactive gaming platform, FanDuel Group partnership and portfolio expansion. Also, increased focus on its online betting offerings bodes well. In the past three months, shares of the company have increased 39.9% compared with the industry’s 23.5% growth. However, dismal traffic due to the coronavirus pandemic is a concern.
Let us discuss the factors highlighting why investors should hold on to the stock for the time being.
Factors Likely to Drive Growth
Boyd Gaming’s focus on interactive gaming platform bodes well. Owing to the strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry. In 2020, online gaming contributed more than $10 million to EBITDAR backed by FanDuel's mobile sports operation in Pennsylvania, Illinois, Indiana, and Iowa. For 2021, the company expects EBITDAR to be more than $20 million.
During fourth-quarter 2020, the company also collaborated with Aristocrat Technologies for the roll out of a new cashless digital wallet – BoydPay, in Indiana and Ohio. Going forward, the company plans to integrate the wallet into its online products, thereby expanding the services to additional amenities and Boyd Gaming properties. Also, the company is optimistic about online gaming prospects in Louisiana, Kansas, Missouri and Ohio.
Meanwhile, the company continues to expand its portfolio by strengthening current operations and growing through capital investment as well as other strategic measures. During the fourth quarter, the company stated to have started work on Wilton Rancheria resorts that is positioned as the closest Class 3 casino to Downtown Sacramento in the South Bay area. With a tentative opening scheduled by the second half of 2022, the company is optimistic with respect to growth.
Nevertheless, the company stated that it has enough liquidity to survive a zero-revenue scenario for the next 12 months. At the end of the fourth quarter, Boyd Gaming had cash and cash equivalents of $519.2 million compared with $506 million as on Sep 30, 2020. Although, total debt during the fourth quarter amounted to $3.95 billion compared with $4.04 billion as on third-quarter 2020, the debt-to-capitalization ratio at the end of the fourth quarter came in at 0.8x, almost flat sequentially.
Concerns
Boyd Gaming’s financials in 2020 were negatively impacted by the coronavirus pandemic. Even though the company resumed operations at majority of its gaming properties, traffic is expected to be affected by the social-distancing protocols. Owing to the uncertainty of the crisis, the company suspended its share repurchase programs. Also, further chances of temporary shutdowns cannot be ruled out.
Meanwhile, heightened competition with new entries in the already high-supply market is a headwind for the company.
Boyd Gaming, which shares space with Red Rock Resorts, Inc. (RRR - Free Report) , Wynn Resorts, Limited (WYNN - Free Report) and Las Vegas Sands Corp. (LVS - Free Report) in the Zacks Gaming industry, carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>