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Is Bally's (BALY) a Great Value Stock Right Now?

·2-min read

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Bally's (BALY) is a stock many investors are watching right now. BALY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 18.60 right now. For comparison, its industry sports an average P/E of 22.08. Over the last 12 months, BALY's Forward P/E has been as high as 26.56 and as low as -441.96, with a median of 18.50.

Finally, investors will want to recognize that BALY has a P/CF ratio of 8.11. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 24.32. BALY's P/CF has been as high as 48.62 and as low as 7.94, with a median of 15.76, all within the past year.

These are just a handful of the figures considered in Bally's's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BALY is an impressive value stock right now.


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Zacks Investment Research