Are Investors Undervaluing Boyd Gaming (BYD) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Boyd Gaming (BYD) is a stock many investors are watching right now. BYD is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.49, which compares to its industry's average of 32.46. Over the past year, BYD's Forward P/E has been as high as 12.90 and as low as 8.82, with a median of 11.01.

Another valuation metric that we should highlight is BYD's P/B ratio of 4.82. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 13.64. Within the past 52 weeks, BYD's P/B has been as high as 4.98 and as low as 3.02, with a median of 4.04.

Melco Resorts & Entertainment Limited (MLCO) may be another strong Gaming stock to add to your shortlist. MLCO is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.

Melco Resorts & Entertainment Limited is trading at a forward earnings multiple of 16.16 at the moment, with a PEG ratio of 0.53. This compares to its industry's average P/E of 32.46 and average PEG ratio of 1.23.

MLCO's price-to-earnings ratio has been as high as 38.28 and as low as 12.10, with a median of 18.39, while its PEG ratio has been as high as 1.11 and as low as 0.26, with a median of 0.49, all within the past year.

Additionally, Melco Resorts & Entertainment Limited has a P/B ratio of -3.33 while its industry's price-to-book ratio sits at 13.64. For MLCO, this valuation metric has been as high as -2.07, as low as -4.04, with a median of -2.83 over the past year.

These are just a handful of the figures considered in Boyd Gaming and Melco Resorts & Entertainment Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BYD and MLCO is an impressive value stock right now.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research