Yahoo Finance At US$56.83, Is It Time To Put Boyd Gaming Corporation (NYSE:BYD) On Your Watch List?
Boyd Gaming Corporation (NYSE:BYD), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Boyd Gaming’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Boyd Gaming
Is Boyd Gaming Still Cheap?
Great news for investors – Boyd Gaming is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $79.67, but it is currently trading at US$56.83 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Boyd Gaming’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What does the future of Boyd Gaming look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 8.1% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Boyd Gaming, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since BYD is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on BYD for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BYD. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
So while earnings quality is important, it's equally important to consider the risks facing Boyd Gaming at this point in time. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Boyd Gaming.
If you are no longer interested in Boyd Gaming, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
