Is Boyd Gaming (BYD) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Boyd Gaming (BYD) is a stock many investors are watching right now. BYD is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.81 right now. For comparison, its industry sports an average P/E of 33.29. BYD's Forward P/E has been as high as 12.90 and as low as 8.50, with a median of 10.91, all within the past year.

Investors should also recognize that BYD has a P/B ratio of 5.22. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 13.78. Within the past 52 weeks, BYD's P/B has been as high as 5.22 and as low as 2.90, with a median of 4.00.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Boyd Gaming is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BYD feels like a great value stock at the moment.

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

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