Group 1: Company Overview - Boyd Gaming is part of the Consumer Discretionary group, which includes 264 companies and is currently ranked 10 in the Zacks Sector Rank [2] - Boyd Gaming has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Performance Metrics - The Zacks Consensus Estimate for Boyd Gaming's full-year earnings has increased by 6.2% in the past quarter, reflecting improved analyst sentiment [4] - Boyd Gaming has returned approximately 19.2% year-to-date, outperforming the average return of 8.5% for the Consumer Discretionary sector [4] Group 3: Industry Comparison - Boyd Gaming belongs to the Gaming industry, which consists of 40 stocks and is currently ranked 74 in the Zacks Industry Rank; the industry has an average gain of 21.3% this year, indicating that Boyd Gaming is slightly underperforming its industry [6] - In contrast, Liberty Media Corporation - Liberty Formula One Series C, another Consumer Discretionary stock, has returned 13.1% year-to-date and is part of the Media Conglomerates industry, which has a lower average return of 8.8% [5][7]

Core Viewpoint - Boyd Gaming (BYD) has shown strong stock performance, reaching a new 52-week high and outperforming both the Zacks Consumer Discretionary sector and the Zacks Gaming industry in year-to-date returns [1][2]. Performance Metrics - Boyd's stock has increased by 20% since the beginning of the year, compared to a 9.1% increase in the Zacks Consumer Discretionary sector and a 24.8% return in the Zacks Gaming industry [1]. - The stock has consistently beaten earnings estimates, reporting an EPS of $1.87 against a consensus estimate of $1.67 in its last earnings report [2]. Earnings Projections - For the current fiscal year, Boyd is projected to achieve earnings of $6.91 per share with revenues of $3.77 billion, reflecting a 5.5% increase in EPS but a 4.04% decrease in revenues [3]. - The next fiscal year is expected to see earnings of $7.54 per share on revenues of $3.57 billion, indicating a year-over-year EPS growth of 9.12% but a revenue decline of 5.29% [3]. Valuation Metrics - Boyd's stock trades at 12.6 times the current fiscal year EPS estimates, significantly lower than the peer industry average of 25.6 times [7]. - The trailing cash flow multiple is 8.6 times, compared to the peer group's average of 11.9 times, and the PEG ratio stands at 2.45, positioning Boyd favorably for value investors [7]. Style Scores - Boyd has a Value Score of A, with Growth and Momentum Scores of C and B, respectively, resulting in a VGM Score of B [6]. - The Zacks Rank for Boyd is 2 (Buy), supported by a positive earnings estimate revision trend, making it a suitable choice for investors looking for stocks with strong potential [8].

Core Points - Boyd Gaming Corp. has not disclosed whether it paid a ransom following a cyberattack on its internal IT systems [1][2] - The company operates 11 properties, including three in downtown Las Vegas, and reported the cyberattack in a filing with the SEC [2] - Boyd Gaming took immediate action by engaging external cybersecurity experts and cooperating with federal law enforcement [3] Cyberattack Context - In 2023, two notable cyberattacks targeted casino companies: Caesars Entertainment paid a $15 million ransom, while MGM Resorts did not and faced an estimated $100 million in costs due to system downtime [4] - Boyd Gaming does not anticipate any material costs resulting from the cyberattack [4] Financial Implications - The company believes the incident will not materially affect its financial condition or operational results [5] - Boyd maintains a comprehensive cybersecurity insurance policy that is expected to cover costs related to incident response, forensic investigations, business interruptions, legal actions, and regulatory fines, subject to policy limits and deductibles [5] Security Measures - MGM's attack involved social engineering tactics, but Boyd has not disclosed how the cybercriminals accessed its systems [6]

Core Insights - BYD has surpassed Tesla in the European Union electric vehicle market for the second consecutive month, indicating a significant shift in market dynamics [1] - In August 2025, BYD sold over 13,500 vehicles, showcasing its growing presence and competitiveness in the EV sector [1] Company Performance - BYD's sales performance in August 2025 reflects a strong demand for its electric vehicles, contributing to its lead over Tesla in the EU market [1] - The sales figures suggest that BYD is effectively challenging the previously dominant position held by Tesla in the electric vehicle segment [1] Market Dynamics - The shift in market leadership from Tesla to BYD highlights the increasing competition within the electric vehicle industry in Europe [1] - This development may signal a changing landscape for electric vehicle manufacturers, as new players like BYD gain traction [1]

Core Viewpoint - Berkshire Hathaway has exited its investment in BYD, marking the end of a 17-year relationship that generated significant returns for the American investment firm [1][2][3] Company Summary - Berkshire Hathaway's energy unit marked the value of its BYD shares as zero as of March 2025, as reported in a filing to the U.S. Securities and Exchange Commission [2] - The investment began in 2008 when Berkshire Hathaway acquired a 10% stake in BYD for approximately $230 million, with shares trading at around HK$8 each [4] - BYD has achieved a market capitalization exceeding HK$1 trillion in Hong Kong and 975 billion yuan ($137 billion) in Shenzhen, with its chairman Wang Chuanfu now being China's 11th richest person with a net worth of $24.4 billion [5] Industry Summary - BYD is expected to miss its 2025 sales target of 5.5 million electric vehicles (EVs) globally due to intense competition and regulatory pressures against discounting strategies [6] - Deutsche Bank forecasts BYD will deliver 4.7 million cars globally in 2025, while Morningstar predicts 4.8 million [6]

Core Insights - Boyd Group Services Inc. is a leading consolidator in the North American collision repair and auto glass sector, with a focus on strategic acquisitions and disciplined capital allocation to expand its network of specialized repair centers [2][4][44] - The company aims to achieve approximately $5 billion in revenue and $700 million in adjusted EBITDA by fiscal 2029, reflecting its ambitious long-term growth targets [2][16][29] Company Overview - Boyd operates non-franchised collision repair and auto glass centers across North America, emphasizing professional repair standards and economies of scale through acquisitions and organic growth [3][4] - The company maintains several operating banners tailored to local market preferences, including Boyd Autobody & Glass in Canada and various regional brands in the U.S. [4][5] Market Dynamics - Insurer networks favor consolidated providers like Boyd that can deliver consistent turnaround times and accurate estimates, which enhances partnerships and supports price stability [5][6] - The increasing complexity of vehicle technology, such as ADAS calibration, raises the value of standardized training and capital investment, positioning Boyd favorably in the market [5][6] Financial Performance - Boyd's financial metrics indicate a recent compression in valuation multiples due to a slowdown in store openings and negative same-store sales, prompting market reappraisals [10][16] - Historical compound annual growth in shareholder value is noted to be near 24%, reflecting earlier expansion and successful M&A strategies [16][17] Operational Model - The operational model integrates collision repair and auto glass services, allowing for standardized processes that enhance insurer contracting and procurement economies [24][25] - Investments in technician certification and calibration equipment are critical for maintaining quality and reducing warranty claims, which supports insurer confidence [23][24] Competitive Landscape - Boyd differentiates itself through a diversified brand portfolio, centralized procurement, and strong insurer relationships, while facing competition from national and regional chains like Gerber Collision & Glass [20][41] - The company's operational synergies, such as improved cycle times and procurement savings from acquisitions, strengthen its competitive position [21][22] Governance and Leadership - The leadership team has guided Boyd through multiple acquisition cycles and emphasizes integration discipline, capital allocation, and operational investments as key to achieving long-term targets [29][30] - Management's focus on operational metrics during periods of softness in same-store sales demonstrates a disciplined approach to maintaining investor confidence [30][32]

Group 1 - Boyd Gaming (BYD) has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Take-Two Interactive (TTWO) has a Zacks Rank of 3 (Hold) [3][7] - Value investors typically assess various traditional metrics to identify undervalued stocks, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - BYD has a forward P/E ratio of 12.08, significantly lower than TTWO's forward P/E of 88.27, suggesting BYD may be undervalued [5] Group 2 - The PEG ratio for BYD is 2.36, while TTWO's PEG ratio is 2.58, indicating BYD's expected earnings growth is more favorable relative to its valuation [5] - BYD's P/B ratio is 4.79 compared to TTWO's P/B of 13.23, further supporting the notion that BYD is undervalued [6] - Based on the valuation metrics, BYD holds a Value grade of A, while TTWO has a Value grade of D, reinforcing BYD's position as the superior value option [6][7]

Group 1 - ASICS Corporation Unsponsored ADR is part of the Consumer Discretionary sector, which includes 254 companies and ranks 9 in the Zacks Sector Rank [2] - The Zacks Rank system indicates ASICS Corporation has a current rank of 2 (Buy), suggesting a positive outlook for the stock [3] - ASICS Corporation's year-to-date return is 36.9%, significantly outperforming the Consumer Discretionary sector average return of 10.9% [4] Group 2 - ASICS Corporation is categorized under the Leisure and Recreation Products industry, which consists of 22 companies and ranks 160 in the Zacks Industry Rank [6] - The Leisure and Recreation Products industry has seen an average gain of 10.7% this year, indicating ASICS Corporation's performance is above this average [6] - In comparison, Boyd Gaming, another stock in the Consumer Discretionary sector, has a year-to-date return of 14.8% and is part of the Gaming industry, which has a higher year-to-date return of 24.8% [5][7]

Economic Overview - Wall Street resumed its rally following a 25 basis points rate cut by the Federal Reserve, with the Dow and Nasdaq reaching record highs, indicating regained investor confidence [1][3] - The Federal Reserve raised its GDP forecast for the year, reflecting a positive sentiment in the economy as inflation has eased substantially [1][6] Rate Cuts and Economic Impact - The Federal Reserve's recent rate cut to a range of 4-4.25% is aimed at addressing concerns over a struggling labor market and a slowing economy, with expectations of two more rate cuts this year [3][5][9] - Lower borrowing costs are anticipated to benefit the broader economy, particularly in consumer discretionary sectors [6][9] Consumer Discretionary Stocks - Boyd Gaming Corporation (BYD) has an expected earnings growth rate of 5.2%, with a 4.9% improvement in the Zacks Consensus Estimate over the last 60 days [7] - Norwegian Cruise Line Holdings Ltd. (NCLH) is projected to have a 13.7% earnings growth rate, with a 3% increase in the Zacks Consensus Estimate [8] - Ralph Lauren Corporation (RL) shows a strong expected earnings growth rate of 19.8%, with an 8.4% improvement in the Zacks Consensus Estimate [10] - Hasbro, Inc. (HAS) has an expected earnings growth rate of 21.5%, with a notable 14.6% increase in the Zacks Consensus Estimate [11] - Grand Canyon Education, Inc. (LOPE) is expected to see a 12.8% earnings growth rate, with a 3.7% improvement in the Zacks Consensus Estimate [12][13]

Industry Overview - The Zacks Gaming industry is experiencing growth due to increased gaming revenues in Macau, strong demand for sports betting, and robust U.S. commercial gaming revenues [1][3][4] - The industry includes companies that operate integrated casinos, hotels, and entertainment resorts, as well as those providing technology products and services in gaming markets [2] Key Themes - Macau's gross gaming revenues (GGR) reached MOP 22.15 billion ($2.76 billion) in August, marking a 12.2% year-over-year increase and a 0.1% gain from July [3] - U.S. commercial gaming revenues rose 9.8% year-over-year in Q2 2025, totaling $19.44 billion from traditional casino games, sports betting, and iGaming [4] - The legalization of sports betting across multiple states has significantly contributed to industry growth, with popular gaming applications including DraftKings and FanDuel [5] Economic Factors - Ongoing economic uncertainty, rising inflation, and geopolitical tensions pose challenges to the gaming industry, potentially reducing consumer discretionary spending [6] Industry Performance - The Zacks Gaming industry ranks 96, placing it in the top 39% of over 245 Zacks industries, indicating positive near-term prospects [7][8] - The industry has outperformed the S&P 500 Index, rising 37.3% over the past year compared to the S&P 500's 19.9% growth [10] Valuation Metrics - The industry has a trailing 12-month EV/EBITDA ratio of 21.45, which is higher than the S&P 500's ratio of 18.35, reflecting a premium valuation [13] Notable Companies - **Boyd Gaming**: Benefits from a diversified business model and operational efficiencies, with a 4.9% increase in 2025 earnings estimates to $6.89 [17][18] - **Red Rock Resorts**: Strong performance from Durango Casino Resort and Las Vegas operations, with a 12.7% increase in 2025 earnings estimates to $1.77 [20][22] - **Melco Resorts & Entertainment**: Strong momentum in Macau operations, with a 69% surge in 2025 earnings estimates to $0.49 [24][25]