5 Best Cyclical Stocks to Buy Now

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In this article, we discuss 5 best cyclical stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Cyclical Stocks to Buy Now

5. Boyd Gaming Corporation (NYSE:BYD)

Number of Hedge Fund Holders: 35

Boyd Gaming Corporation (NYSE:BYD) is a Chinese conglomerate that manufactures automobiles, buses, electric bicycles, trucks, forklifts, solar panels, and rechargeable batteries. On September 15, Boyd Gaming Corporation (NYSE:BYD) declared a quarterly dividend of $0.15 per share, in line with previous. The dividend is payable on October 15, to shareholders of record as of September 30. Boyd Gaming Corporation (NYSE:BYD) is one of the best cyclical stocks to buy now. 

On September 23, JMP Securities analyst Jordan Bender initiated coverage of Boyd Gaming Corporation (NYSE:BYD) with an Outperform rating and a $65 price target. The analyst sees a “disconnect” between the stock’s valuation and gaming fundamentals. However, the macro backdrop in Nevada remains resilient, driving a strong spend per head in the locals/downtown market, where Boyd Gaming Corporation (NYSE:BYD) makes 39% of its earnings, the analyst told investors. The analyst said Nevada has proven to be one of the strongest gaming markets.

Among the hedge funds tracked by Insider Monkey, 35 funds were bullish on Boyd Gaming Corporation (NYSE:BYD) at the end of June 2022, compared to 40 funds in the last quarter. Parag Vora’s HG Vora Capital Management is the leading stakeholder of the company, with 4.75 million shares valued at $236.3 million. 

Here is what Baron Real Estate Fund has to say about Boyd Gaming Corporation (NYSE:BYD) in its Q2 2022 investor letter:

“Boyd Gaming Corporation is one of the largest and most successful casino entertainment companies in the U.S. The company owns and operates 28 casino gaming properties in 10 states with a large presence in Las Vegas. Business conditions have been strong, yet the shares are valued at only 6 times 2022 estimated cash flow versus a long-term average of more than 9 times cash flow. The company maintains a strong and liquid balance sheet. Insiders own approximately 27% of the company. We believe Boyd is a compelling acquisition target.”

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