According to the investment media’s stock market narrative, money justly moved out of tech and growth stocks toward value stocks after an epic bull run during the thick of the pandemic. Though the talking heads on the top financial networks often point to specific reasons for the rise and fall of specific groups of stocks and the overarching market, the truth is that market movement is often difficult to explain.
If the mainstream investment media’s narrative is true and the pendulum rightfully swung in favor of value stocks following the influx of money into tech as the pandemic roared, it is only a matter of time until the pendulum swings back. The bottom line is money will gravitate toward growth stocks in the long run, simply because growth stocks have considerable upside.
Boyd Gaming Corporation (BYD)
BYD has been in business since the mid-70s. Based in fabulous Las Vegas, BYD has gaming properties throughout the silver state as well as Indiana, Ohio, Illinois, and about half a dozen other states. BYD has 29 properties and more than 300 food/beverage outlets.
BYD is a POWR Rating monster with an overall grade of A. This grade indicates the stock is rated a Strong Buy. BYD has an A Growth Grade and an A Sentiment Grade. The company also has Bs in the Quality and Momentum components. Click here to find out BYD’s grades in the Value and Stability components. BYD is the top-ranked stock in the Entertainment – Casinos/Gambling industry. You can find other top stocks in this industry by clicking here.
Analysts are singing the praises of BYD, establishing an average target price of $78.11 for the stock. If BYD hits this target, it will have increased by more than 36% in value. The highest analyst target price for the stock is $83. Of the analysts who cover BYD, three rate it a Strong Buy, and five rate it a Buy. BYD has a forward P/E ratio of 16.74, indicating the stock is undervalued at its current price.
JBL, a St. Petersburg, Florida-based electronics manufacturing services provider, is one of the largest global suppliers in its space. JBL offerings include electronics, after-market services, and more for consumers and businesses in a wide variety of sectors. JBL hauled in more than $27 billion in fiscal 2020.
JBL has an overall grade of B, translating into a Buy rating in our POWR Ratings system. The stock has grades of B in the Sentiment and Value components. Click here to find out how JBL fares in the Growth, Momentum, Stability, and Quality components. JBL is ranked in the top five of the 73 publicly traded companies in the Technology – Services industry. Click here to find other top-ranked stocks in this industry.
If the analysts are correct, JBL will move higher. The average analyst target price for JBL is $69.71. If JBL hits this price, it will have soared by more than 25%. In the past 34 weeks, the average analyst price target for JBL has increased $25.38. JBL has a forward P/E ratio of 10.28. This is a fairly low P/E which indicates JBL is undervalued at $58.01 per share.
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BYD shares were unchanged in premarket trading Friday. Year-to-date, BYD has gained 34.76%, versus a 17.92% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
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