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Sports betting Small-Cap, Boyd Gaming (BYD) Lands on Easy

Written by Barry Dumas | 06-Oct-2020 07:45:00

Boyd Gaming Corp (BYD)

The U.S sports betting frenzy might reach a bubble-like valuation, but one gaming operator might be set for a move to the upside?

The company and new stock addition to the Easy platform are the Boyd Gaming Corporation (BYD) which operates as a multi-jurisdictional gaming company. The company operates through three main segments, namely Las Vegas Locals, Downtown Las Vegas, and Midwest & South.

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Fundamentals

The gaming and hospitality company beat analyst expectation when the company released its second-quarter results in July 2020. Earnings per share showed a surprise beat of $0.49 per share while Revenue, still down Year-over-year increased by $10.25 million.

"During the reopening period, our Midwest & South properties posted double-digit EBITDAR gains, while our Las Vegas Locals properties also improved EBITDAR performance versus the prior year. While overall visitation and revenues are down, spend per visit is robust, and we have successfully streamlined operating and marketing expenses to drive margin gains of more than 1,000 basis points in both the Midwest & South and Las Vegas Locals segments. These positive operating trends are continuing into July, giving us confidence that we can sustain increased efficiencies in our operating model." - Keith E. Smith (CEO)

Boyd Gaming Corp (BYD) share overview:

  • Sector: Consumer Discretionary.
  • Market Cap of $3.56 billion.
  • Dividend Yield: N/A
  • Price/Earnings (LTM): 21.9x
  • Price/Book: 3.5x
  • Next Earnings: 24th of October 2020.
  • 52 Week Range low of $7.84 and $34.74 per share high.

With the return of major sports in August, game betting reached unprecedented levels which saw Boyd Gaming’s Valley Forge Casino dominate. The casino has a partnership with FanDuel and took in $149 million in bets and generated $9 million in online Revenue.

Outlook – Boyd Gaming Corporation, apart from its travel business, operates 29 casinos in 10 states and its partnership with FanDuel is set to be a significant competitor to DraftKings.

Chart Life

The price action on Boyd Gaming Corp (BYD) has been in a steady uptrend gaining over 300% since the COVID-19 lows in March. The 50-day simple moving average of the price (blue line) is also supporting the mover higher, although we might see some profit-taking.

Short interest on outstanding shares on Boyd Gaming Corp (BYD) is around 5.8%, while the median analyst expectations are $31.00 per share (red line).

Portfolio particulars

  • Portfolio Hold (Current)*
  • Portfolio Buy opportunity: above $27.33 per share**
  • WhatsTheBeef long term target price: $38.96 per share.

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Informed decisions

Boyd Gaming Corp (BYD) is an exciting addition to the EasyEquities platform and a stock to watch while expectation in the sports betting arena run rampant and gain traction. Fundamentals should be monitored closely while the bottom line plays catch-up with the pandemic.

New to investing

and want to know more about latest stock additions?

Read:  New Instruments on EasyEquities September 2020

 

Sources – EasyResearch, Boyd Gaming Corp, SeekingAlpha, Koyfin, Wikipedia.

Take note: stock data was taken on 05/10/2020 before the U.S market open. 

*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio before the U.S. market open.

**Portfolio Buy opportunity refers to Technical level crossed which might imply that the markets behavior would support the outlook and Close above refers to a share price close above a Technical Resistance level.

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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

 
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) and GT247.com do not warrant the correctness, accuracy, timeliness, reliability or completeness of any information received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities and GT247.com (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.The value of a financial product can go down, as well as up, due to changes in the value of the underlying investments. An investor may not recoup the full amount invested. Past performance is not necessarily an indication of future performance. These products are not guaranteed. Examples and/or graphs are for illustrative purposes only.