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Boyd Gaming (BYD) Stock Outpaces Industry in a Year: Here's Why

Boyd Gaming Corporation BYD is poised to benefit from the interactive gaming platform, FanDuel partnership and expansion efforts. This and the focus on the Pala Interactive acquisition bodes well.

In the past year, shares of Boyd Gaming have gained 8.2% against the industry’s fall of 35.3%. The price performance was backed by a solid earnings surprise history. Boyd Gaming’s earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters. Earnings estimates for 2022 and 2023 have moved up 4.9% and 3.8%, respectively, in the past 60 days. This positive trend signifies bullish analysts’ sentiments and justifies the company’s Zacks Rank #2 (Buy), indicating robust fundamentals and the expectation of outperformance in the near term. You can see the complete list of today’s Zacks #1 Rank (String Buy) stocks here.

Major Growth Drivers

Since the coronavirus outbreak, Boyd Gaming has been witnessing a solid performance by its interactive gaming platform. Thanks to its strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry. During the third quarter of 2022, the company launched mobile and retail sports betting in Kansas. Also, it is focused on online gaming prospects in Ohio. It anticipates launching FanDuel retail and mobile sportsbooks in the state in 2023, subject to regulatory approvals. Given the growth opportunities related to the expansion in new markets and digital opportunities in online casino gaming, the company anticipates an EBITDAR (from its online operations) of approximately $30 million in 2022.

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Zacks Investment Research


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During third-quarter 2022, the company reported progress with respect to its previously-announced acquisition of Pala Interactive. Valued at $170 million, the company anticipates closing the deal by 2022 end, subject to regulatory approvals. The initiative allows the company to build a profitable, regional, online casino operation with the support of the latter’s technology, products and management expertise. Upon completion, the company intends to migrate its two Stardust-branded i-casinos in New Jersey and Pennsylvania to its platform in 2023. The company intends to acquire new B2B customers from Pala through the enhancement of the platform's products, features and capabilities.

Boyd Gaming focuses on expanding its portfolio by strengthening current operations and growing through capital investment and other strategic measures. During the third quarter, the company reported progress with respect to the expansion of the Fremont Hotel. The project includes expanded casino floor space, the debut of Nevada's first FanDuel Sportsbook and quick-serve dining options. The company remains optimistic in this regard and anticipates it to be a driving force in the Downtown Las Vegas segment. The company is evaluating opportunities to reinvest in its existing operations from its regional portfolio. To this end, it has started to develop a land-based facility at Treasure Chest. The company intends to complete the expansion project by 2024. It emphasized enhancing its gaming and non-gaming offerings to boost the guest experience of this property.

Other Key Picks

Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Monarch Casino & Resort, Inc. MCRI, Hyatt Hotels Corporation H and Crocs, Inc. CROX.

Monarch Casino sports a Zacks Rank #1. MCRI has a trailing four-quarter earnings surprise of 9.1%, on average. The stock has gained 30.5% in the past year.

The Zacks Consensus Estimate for MCRI’s 2022 sales and earnings per share (EPS)indicates growth of 21.1% and 29.2%, respectively, from the year-ago period’s reported levels.

Hyatt currently has a Zacks Rank #2. H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has increased 28.9% in the past year.

The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates a surge of 92.6% and 121.8%, respectively, from the year-ago period’s reported levels.

Crocs currently has a Zacks Rank #2. CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 37.9% in the past year.

The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 51.5% and 23.7%, respectively, from the year-ago period’s levels.

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Hyatt Hotels Corporation (H) : Free Stock Analysis Report

Boyd Gaming Corporation (BYD) : Free Stock Analysis Report

Monarch Casino & Resort, Inc. (MCRI) : Free Stock Analysis Report

Crocs, Inc. (CROX) : Free Stock Analysis Report

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