Is Boyd Gaming Worth Buying as Growth Projects Lift Execution Risk?

Boyd Gaming’s Valuation Offers a Potential Cushion

BYD trades at 1.5X forward 12-month sales, below the gaming sub-industry’s 1.8X multiple and its five-year median of 1.7X. That discount gives value-oriented investors some valuation support.

The cushion is not a complete answer. The Zacks Consensus Estimate calls for 2026 earnings of $7.29 per share versus $7.40 in 2025, leaving the stock dependent on successful project execution and an eventual improvement in pressured properties.

BYD’s Core Regional Business Remains Resilient

Midwest & South second-quarter revenues increased to $556.9 million from $540.1 million a year earlier. Adjusted EBITDAR rose to $208.7 million from $201.4 million, with property margin approaching 38%.

Management attributed the gains to higher core and retail play and recent property investments. Those results give Boyd a stable earnings base while guests continue to favor spending closer to home.

Boyd Gaming’s Growth Pipeline Demands Heavy Spending

Boyd expects 2026 capital expenditures of $650 million to $700 million. The program includes about $300 million for the Norfolk, VA, resort, $75 million for the Orleans hotel remodel and $50 million of growth capital tied mainly to Cadence Crossing and Par-A-Dice work.

Norfolk remains on time and on budget for a late-2027 opening, while Cadence Crossing is expected to begin contributing later in the third quarter. The projects broaden Boyd’s growth runway but raise execution and cash-flow demands in the meantime.

BYD Faces Persistent Las Vegas Destination Weakness

Las Vegas Locals continues to feel softer destination demand, particularly at the Orleans. Suncoast construction reduced second-quarter adjusted EBITDAR by about $3 million, with a similar drag expected in the third quarter before renovations finish.

The pressure is not uniform across Las Vegas. MGM Resorts International MGM reported second-quarter Las Vegas Strip Resorts revenue growth. Wynn Resorts, Limited WYNN reported higher Las Vegas operating revenues but lower adjusted property EBITDAR. Boyd’s issue remains concentrated in destination-sensitive properties and renovation disruption.

Boyd Gaming Balances Investment With Capital Returns

Boyd repurchased $156 million of stock in the second quarter and paid $15 million in dividends. Management plans to keep repurchases near $150 million per quarter and expects 2026 capital returns to exceed $650 million.

That commitment sits alongside $322.7 million of cash, $2.6 billion of debt and quarter-end traditional leverage of 2.2X. Available credit capacity gives Boyd flexibility, but simultaneous development spending and shareholder returns leave less room for project missteps.

BYD’s Value Strength Meets Mixed Style Signals

The setup supports patience more than an aggressive entry. Boyd’s valuation, regional resilience and project pipeline are constructive, but destination softness, construction effects and elevated spending keep execution risk visible.

BYD currently carries a Zacks Rank #3 (Hold). Its Value Score of A supports the valuation case, while the Growth Score of F, Momentum Score of C and VGM Score of C point to a mixed profile. For investors focused on near-term timing, those signals favor a wait-and-see stance as the development program advances. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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