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Boyd Gaming (BYD) Stock Outpaces Industry YTD: Here's Why
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Despite the coronavirus pandemic, shares of Boyd Gaming Corporation (BYD - Free Report) have performed exceptionally well so far this year. Year to date, the stock has surged 42%, compared with the industry’s growth of 9.6%. Notably, the company is gaining from initiatives to strengthen current operations, growth through capital investment and other strategic measures.
We believe there is still momentum left in this Zacks Rank #1 (Strong Buy) stock. This is because the company has an expected long-term earnings growth rate of 19.8% and a VGM Score of A. Moreover, earnings estimates for 2021 have moved up by 52.1% to $3.24 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other stocks from the same space such as MGM Resorts International (MGM - Free Report) have gained 25.3%, while some like Las Vegas Sands Corp. (LVS - Free Report) and Corsair Gaming, Inc. (CRSR - Free Report) have declined 4.8% and 11.5%, respectively, so far this year.
Growth Drivers
Boyd Gaming has been undertaking efforts to expand online betting offerings. During third-quarter 2019, it partnered with FanDuel. In second-quarter 2020, the company expanded its partnership with FanDuel Group, which includes retail sports books at seven Boyd properties, mobile sports betting apps in Pennsylvania and Indiana, and the online gaming site in Pennsylvania. During third-quarter 2020, the company continued to expand its partnership with FanDuel Group, thereby launching mobile sports betting products in Illinois and Iowa. Going forward, the company is optimistic about online gaming prospects in Ohio, Louisiana, Missouri and Kansas.
Apart from FanDuel, the company continues to focus on Stardust brand to expand its online gaming presence. During second-quarter 2021, the company rolled out of Stardust online casinos in Pennsylvania and New Jersey.
Since the outbreak of coronavirus, Boyd Gaming has been witnessing solid performance by the interactive gaming platform. Thanks to the strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry. In September 2020, the company collaborated with Aristocrat Technologies for the launch of a new digital initiative, namely, B Connected Mobile. The application enhances customer experience along with frictionless access to its range of online, social and mobile gaming brands. In 2020, online gaming contributed more than $10 million in EBITDAR backed by FanDuel's mobile sports operation in Pennsylvania, Illinois, Indiana, Iowa and Mississippi. For 2021, the company expects EBITDAR to be more than $20 million.
Post coronavirus-induced shutdowns, increased traffic from local and regional customer base is likely to benefit Boyd Gaming. Notably, the company expects the local market in Las Vegas to act as a catalyst for its portfolios. With restaurants and bars open, frequent visitation of locals is likely to drive growth.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Boyd Gaming (BYD) Stock Outpaces Industry YTD: Here's Why
Despite the coronavirus pandemic, shares of Boyd Gaming Corporation (BYD - Free Report) have performed exceptionally well so far this year. Year to date, the stock has surged 42%, compared with the industry’s growth of 9.6%. Notably, the company is gaining from initiatives to strengthen current operations, growth through capital investment and other strategic measures.
We believe there is still momentum left in this Zacks Rank #1 (Strong Buy) stock. This is because the company has an expected long-term earnings growth rate of 19.8% and a VGM Score of A. Moreover, earnings estimates for 2021 have moved up by 52.1% to $3.24 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other stocks from the same space such as MGM Resorts International (MGM - Free Report) have gained 25.3%, while some like Las Vegas Sands Corp. (LVS - Free Report) and Corsair Gaming, Inc. (CRSR - Free Report) have declined 4.8% and 11.5%, respectively, so far this year.
Growth Drivers
Boyd Gaming has been undertaking efforts to expand online betting offerings. During third-quarter 2019, it partnered with FanDuel. In second-quarter 2020, the company expanded its partnership with FanDuel Group, which includes retail sports books at seven Boyd properties, mobile sports betting apps in Pennsylvania and Indiana, and the online gaming site in Pennsylvania. During third-quarter 2020, the company continued to expand its partnership with FanDuel Group, thereby launching mobile sports betting products in Illinois and Iowa. Going forward, the company is optimistic about online gaming prospects in Ohio, Louisiana, Missouri and Kansas.
Apart from FanDuel, the company continues to focus on Stardust brand to expand its online gaming presence. During second-quarter 2021, the company rolled out of Stardust online casinos in Pennsylvania and New Jersey.
Since the outbreak of coronavirus, Boyd Gaming has been witnessing solid performance by the interactive gaming platform. Thanks to the strategic partnership with FanDuel, the company is optimistic regarding its future in the iGaming industry. In September 2020, the company collaborated with Aristocrat Technologies for the launch of a new digital initiative, namely, B Connected Mobile. The application enhances customer experience along with frictionless access to its range of online, social and mobile gaming brands. In 2020, online gaming contributed more than $10 million in EBITDAR backed by FanDuel's mobile sports operation in Pennsylvania, Illinois, Indiana, Iowa and Mississippi. For 2021, the company expects EBITDAR to be more than $20 million.
Post coronavirus-induced shutdowns, increased traffic from local and regional customer base is likely to benefit Boyd Gaming. Notably, the company expects the local market in Las Vegas to act as a catalyst for its portfolios. With restaurants and bars open, frequent visitation of locals is likely to drive growth.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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