We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Is Boyd Gaming Worth Buying as Growth Projects Lift Execution Risk?
Read MoreHide Full Article
Key Takeaways
BYD trades below its historical and industry sales multiples as 2026 EPS is projected to edge lower.
Boyd Gaming's regional business grew on stronger core play and property investments.
BYD plans major 2026 projects while maintaining share repurchases and dividend payments.
Boyd Gaming Corporation (BYD - Free Report) pairs a discounted valuation with steady regional demand and new growth projects. Midwest & South and Managed operations are providing support while Las Vegas destination weakness and construction disruption remain pressure points.
The investment case therefore rests on whether future returns from portfolio upgrades and development can offset heavy 2026 spending and near-term operating friction.
Boyd Gaming’s Valuation Offers a Potential Cushion
BYD trades at 1.5X forward 12-month sales, below the gaming sub-industry’s 1.8X multiple and its five-year median of 1.7X. That discount gives value-oriented investors some valuation support.
The cushion is not a complete answer. The Zacks Consensus Estimate calls for 2026 earnings of $7.29 per share versus $7.40 in 2025, leaving the stock dependent on successful project execution and an eventual improvement in pressured properties.
BYD’s Core Regional Business Remains Resilient
Midwest & South second-quarter revenues increased to $556.9 million from $540.1 million a year earlier. Adjusted EBITDAR rose to $208.7 million from $201.4 million, with property margin approaching 38%.
Management attributed the gains to higher core and retail play and recent property investments. Those results give Boyd a stable earnings base while guests continue to favor spending closer to home.
Boyd Gaming’s Growth Pipeline Demands Heavy Spending
Boyd expects 2026 capital expenditures of $650 million to $700 million. The program includes about $300 million for the Norfolk, VA, resort, $75 million for the Orleans hotel remodel and $50 million of growth capital tied mainly to Cadence Crossing and Par-A-Dice work.
Norfolk remains on time and on budget for a late-2027 opening, while Cadence Crossing is expected to begin contributing later in the third quarter. The projects broaden Boyd’s growth runway but raise execution and cash-flow demands in the meantime.
BYD Faces Persistent Las Vegas Destination Weakness
Las Vegas Locals continues to feel softer destination demand, particularly at the Orleans. Suncoast construction reduced second-quarter adjusted EBITDAR by about $3 million, with a similar drag expected in the third quarter before renovations finish.
The pressure is not uniform across Las Vegas. MGM Resorts International (MGM - Free Report) reported second-quarter Las Vegas Strip Resorts revenue growth. Wynn Resorts, Limited (WYNN - Free Report) reported higher Las Vegas operating revenues but lower adjusted property EBITDAR. Boyd’s issue remains concentrated in destination-sensitive properties and renovation disruption.
Boyd Gaming Balances Investment With Capital Returns
Boyd repurchased $156 million of stock in the second quarter and paid $15 million in dividends. Management plans to keep repurchases near $150 million per quarter and expects 2026 capital returns to exceed $650 million.
That commitment sits alongside $322.7 million of cash, $2.6 billion of debt and quarter-end traditional leverage of 2.2X. Available credit capacity gives Boyd flexibility, but simultaneous development spending and shareholder returns leave less room for project missteps.
BYD’s Value Strength Meets Mixed Style Signals
The setup supports patience more than an aggressive entry. Boyd’s valuation, regional resilience and project pipeline are constructive, but destination softness, construction effects and elevated spending keep execution risk visible.
BYD currently carries a Zacks Rank #3 (Hold). Its Value Score of A supports the valuation case, while the Growth Score of F, Momentum Score of C and VGM Score of C point to a mixed profile. For investors focused on near-term timing, those signals favor a wait-and-see stance as the development program advances. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Is Boyd Gaming Worth Buying as Growth Projects Lift Execution Risk?
Key Takeaways
Boyd Gaming Corporation (BYD - Free Report) pairs a discounted valuation with steady regional demand and new growth projects. Midwest & South and Managed operations are providing support while Las Vegas destination weakness and construction disruption remain pressure points.
The investment case therefore rests on whether future returns from portfolio upgrades and development can offset heavy 2026 spending and near-term operating friction.
Boyd Gaming’s Valuation Offers a Potential Cushion
BYD trades at 1.5X forward 12-month sales, below the gaming sub-industry’s 1.8X multiple and its five-year median of 1.7X. That discount gives value-oriented investors some valuation support.
Boyd Gaming Corporation Price and Consensus
Boyd Gaming Corporation price-consensus-chart | Boyd Gaming Corporation Quote
The cushion is not a complete answer. The Zacks Consensus Estimate calls for 2026 earnings of $7.29 per share versus $7.40 in 2025, leaving the stock dependent on successful project execution and an eventual improvement in pressured properties.
BYD’s Core Regional Business Remains Resilient
Midwest & South second-quarter revenues increased to $556.9 million from $540.1 million a year earlier. Adjusted EBITDAR rose to $208.7 million from $201.4 million, with property margin approaching 38%.
Management attributed the gains to higher core and retail play and recent property investments. Those results give Boyd a stable earnings base while guests continue to favor spending closer to home.
Boyd Gaming’s Growth Pipeline Demands Heavy Spending
Boyd expects 2026 capital expenditures of $650 million to $700 million. The program includes about $300 million for the Norfolk, VA, resort, $75 million for the Orleans hotel remodel and $50 million of growth capital tied mainly to Cadence Crossing and Par-A-Dice work.
Norfolk remains on time and on budget for a late-2027 opening, while Cadence Crossing is expected to begin contributing later in the third quarter. The projects broaden Boyd’s growth runway but raise execution and cash-flow demands in the meantime.
BYD Faces Persistent Las Vegas Destination Weakness
Las Vegas Locals continues to feel softer destination demand, particularly at the Orleans. Suncoast construction reduced second-quarter adjusted EBITDAR by about $3 million, with a similar drag expected in the third quarter before renovations finish.
The pressure is not uniform across Las Vegas. MGM Resorts International (MGM - Free Report) reported second-quarter Las Vegas Strip Resorts revenue growth. Wynn Resorts, Limited (WYNN - Free Report) reported higher Las Vegas operating revenues but lower adjusted property EBITDAR. Boyd’s issue remains concentrated in destination-sensitive properties and renovation disruption.
Boyd Gaming Balances Investment With Capital Returns
Boyd repurchased $156 million of stock in the second quarter and paid $15 million in dividends. Management plans to keep repurchases near $150 million per quarter and expects 2026 capital returns to exceed $650 million.
That commitment sits alongside $322.7 million of cash, $2.6 billion of debt and quarter-end traditional leverage of 2.2X. Available credit capacity gives Boyd flexibility, but simultaneous development spending and shareholder returns leave less room for project missteps.
BYD’s Value Strength Meets Mixed Style Signals
The setup supports patience more than an aggressive entry. Boyd’s valuation, regional resilience and project pipeline are constructive, but destination softness, construction effects and elevated spending keep execution risk visible.
BYD currently carries a Zacks Rank #3 (Hold). Its Value Score of A supports the valuation case, while the Growth Score of F, Momentum Score of C and VGM Score of C point to a mixed profile. For investors focused on near-term timing, those signals favor a wait-and-see stance as the development program advances. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.