Boyd Gaming (BYD) Surges 18.1% YTD, Outperforms Consumer Discretionary Stocks

Boyd Gaming (BYD) has outperformed the Consumer Discretionary group this year, with a 18.1% year-to-date return compared to the group's 10.9% average. The stock has a Zacks Rank of #2 (Buy) and a 7.1% increase in full-year earnings estimates. BYD is part of the Gaming industry, which has a 25.4% year-to-date return, but the company's performance may improve as analyst sentiment is improving.

Boyd Gaming Corporation (BYD) has been a standout performer in the Consumer Discretionary sector this year, with a year-to-date return of 18.1% compared to the sector's average of 10.9%. The stock has maintained its momentum, hitting a new 52-week high of $87.83 in the previous session. This strong performance has been driven by consistent positive earnings surprises and favorable analyst sentiment.

Boyd Gaming has a Zacks Rank of #2 (Buy), indicating a favorable outlook from analysts. The company has seen a 7.1% increase in full-year earnings estimates, reflecting a growing consensus among analysts about the company's financial health. The Gaming industry as a whole has also performed well, with a year-to-date return of 25.4%.

The company's strong performance can be attributed to its ability to beat earnings estimates consistently. In its last earnings report on July 24, 2025, Boyd Gaming reported earnings per share (EPS) of $1.87, exceeding the consensus estimate of $1.67. The company also beat the revenue estimate by 5.48%. For the current fiscal year, Boyd Gaming is expected to post earnings of $6.89 per share on $3.76 in revenues.

Valuation metrics suggest that Boyd Gaming is undervalued compared to its peers. The stock trades at 12.6X current fiscal year EPS estimates, which is lower than the peer industry average of 24.5X. On a trailing cash flow basis, the stock trades at 8.6X, compared to the peer group's average of 11X. The PEG ratio of 2.46 further supports the notion that Boyd Gaming is a good value investment.

Boyd Gaming's strong performance and favorable analyst sentiment indicate that the stock may have room to run in the near term. The company's ability to consistently beat earnings estimates and its undervalued valuation metrics make it an attractive investment opportunity for value investors.

References:
[1] https://www.nasdaq.com/articles/boyd-gaming-corporation-byd-hits-fresh-high-there-still-room-run
[2] https://www.nasdaq.com/articles/all-you-need-know-about-boyd-byd-rating-upgrade-strong-buy