A strong stock as of late has been Boyd Gaming (BYD). Shares have been marching higher, with the stock up 0.6% over the past month. The stock hit a new 52-week high of $88.49 in the previous session. Boyd has gained 20% since the start of the year compared to the 9.1% move for the Zacks Consumer Discretionary sector and the 24.8% return for the Zacks Gaming industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any 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 $6.91 per share on $3.77 in revenues. This represents a 5.5% change in EPS on a -4.04% change in revenues. For the next fiscal year, the company is expected to earn $7.54 per share on $3.57 in revenues. This represents a year-over-year change of 9.12% and -5.29%, respectively.
Valuation Metrics
Though Boyd has recently hit a 52-week high, what is next for Boyd? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
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 B, 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 25.6X. On a trailing cash flow basis, the stock currently trades at 8.6X versus its peer group's average of 11.9X. Additionally, the stock has a PEG ratio of 2.45. 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 is even more important than the company's VGM Score. Fortunately, Boyd currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
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 fits the bill. Thus, it seems as though Boyd shares could have potential in the weeks and months to come.
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Boyd Gaming Corporation (BYD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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