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Should Value Investors Buy Boyd Gaming (BYD) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Boyd Gaming (BYD - Free Report) . BYD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that BYD has a P/B ratio of 4.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.13. Over the past year, BYD's P/B has been as high as 5.20 and as low as 3.31, with a median of 4.21.
Finally, we should also recognize that BYD has a P/CF ratio of 8.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BYD's P/CF compares to its industry's average P/CF of 12.45. Over the past 52 weeks, BYD's P/CF has been as high as 10.93 and as low as 6.12, with a median of 8.11.
Investors could also keep in mind International Game Technology (IGT - Free Report) , an Gaming stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Additionally, International Game Technology has a P/B ratio of 2.36 while its industry's price-to-book ratio sits at 6.13. For IGT, this valuation metric has been as high as 3.16, as low as 1.55, with a median of 2.39 over the past year.
These are only a few of the key metrics included in Boyd Gaming and International Game Technology strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BYD and IGT look like an impressive value stock at the moment.