Shares of Boyd Gaming (BYD) have been strong performers lately, with the stock up 2.3% over the past month. The stock hit a new 52-week high of $87.83 in the previous session. Boyd has gained 19.7% since the start of the year compared to the 12.3% gain for the Zacks Consumer Discretionary sector and the 25.8% return for the Zacks Gaming industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 24, 2025, Boyd reported EPS of $1.87 versus consensus estimate of $1.67 while it beat the consensus revenue estimate by 5.48%.
For the current fiscal year, Boyd is expected to post earnings of $6.89 per share on $3.76 in revenues. This represents a 5.19% change in EPS on a -4.22% change in revenues. For the next fiscal year, the company is expected to earn $7.59 per share on $3.57 in revenues. This represents a year-over-year change of 10.16% and -5.15%, respectively.
Valuation Metrics
While Boyd has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Boyd has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.5X. On a trailing cash flow basis, the stock currently trades at 8.6X versus its peer group's average of 11X. Additionally, the stock has a PEG ratio of 2.46. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Boyd an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Boyd currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Boyd passes the test. Thus, it seems as though Boyd shares could have a bit more room to run in the near term.
How Does BYD Stack Up to the Competition?
Shares of BYD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Melco Resorts & Entertainment Limited (MLCO). MLCO has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Melco Resorts & Entertainment Limited beat our consensus estimate by 155.56%, and for the current fiscal year, MLCO is expected to post earnings of $0.49 per share on revenue of $5.21 billion.
Shares of Melco Resorts & Entertainment Limited have gained 16.4% over the past month, and currently trade at a forward P/E of 20.69X and a P/CF of 6.56X.
The Gaming industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BYD and MLCO, even beyond their own solid fundamental situation.
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Boyd Gaming Corporation (BYD): Free Stock Analysis Report Melco Resorts & Entertainment Limited (MLCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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