Is Boyd Gaming (BYD) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Boyd Gaming (BYD) is a stock many investors are watching right now. BYD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that BYD has a P/B ratio of 3.77. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. BYD's current P/B looks attractive when compared to its industry's average P/B of 5.60. Within the past 52 weeks, BYD's P/B has been as high as 5.20 and as low as 3.31, with a median of 4.38.

Finally, investors will want to recognize that BYD has a P/CF ratio of 6.97. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.17. Over the past year, BYD's P/CF has been as high as 10.93 and as low as 6.12, with a median of 8.82.

If you're looking for another solid Gaming value stock, take a look at Golden Entertainment (GDEN). GDEN is a # 2 (Buy) stock with a Value score of A.

Furthermore, Golden Entertainment holds a P/B ratio of 3.27 and its industry's price-to-book ratio is 5.60. GDEN's P/B has been as high as 5.38, as low as 2.88, with a median of 4.26 over the past 12 months.

These are only a few of the key metrics included in Boyd Gaming and Golden Entertainment 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 GDEN look like an impressive value stock at the moment.

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