With the benefits of our proprietary POWR Ratings, we have found an A rated stock that is also a screaming steal, asserts Steve Reitmeister, editor of Reitmeister Total Return — and a participant in The Interactive MoneyShow Virtual Expo on Oct. 5-7. Register here for free.
In our model portfolio, we are adding an allocation to Boyd Gaming (BYD) This casino operator has been in and out of our portfolio over time. And yes, as the Delta virus picked up speed it took a hit leading us to sell a few months back.
However, as we are finding out, governments are less apt to shut down businesses. And consumers are not letting wearing a mask stop them from participating in social activities. This has me excited to add BYD once again.
Let's start on the earnings front. The average beat the past 4 quarters is 75%. That means that they are beating the stuffing out of expectations which is a sign of superior management strength that typically points to more good times ahead.
Next it doesn't get much better on the POWR Ratings front with an overall rating of A — and in the top 2% of all stocks evaluated by the model. Then, on the component front, we find a pretty impressive report card including an A rating for for Growth and Quality and a B rating for Value, Momentum and Sentiment.
Back to the value story, the average target stands at $85 which is a healthy 32% above the current level. Even better, a couple weeks ago Wells Fargo initiated coverage as a Buy with a $92 target.
As I have shared in the past, the more recent the analyst note, the better. That's because they have seen more of what is happening in the current quarter. And thus a statement of confidence that another impressive earnings report is in the offing. This only adds to the attractiveness of adding BYD shares now.