Last Updated: 07 Nov 2024
Executive Summary
Bally's Corp (BALY) is a gaming and entertainment company with a market capitalization of $711.6 million. Despite a challenging operating environment, the company has reported positive quarterly earnings growth of 107% year-over-year. However, the stock trades at a premium valuation compared to its peers, with a forward P/E ratio of 45.87.
Company Overview
Bally's owns and operates casinos, racetracks, and other gaming facilities in the United States. The company has a presence in 11 states and operates under the Bally's, Horseshoe, and Tropicana brands.
Fundamental Analysis
Revenue: Bally's reported revenue of $2.48 billion for the trailing twelve months, representing a modest growth of 0.025% year-over-year.
Earnings: The company reported a diluted EPS of -$11.18 for the trailing twelve months.
Profitability: Bally's profit margins are low, with a negative operating margin of -0.231% and a return on assets of -0.006%.
Valuation: The stock trades at a price-to-sales ratio of 0.286 and a price-to-book ratio of 1.81. These multiples are higher than the industry average.
Technical Analysis
Trend: The stock is currently trading above its 50-day and 200-day moving averages.
Support and Resistance: The stock has support at $17.22, the analyst target price. Resistance is at $18.00, the 52-week high.
Momentum: The stock has positive momentum, as indicated by the rising moving averages.
Short Term Outlook
In the short term, Bally's may benefit from the continued recovery in the gaming industry. However, the company's high valuation and low profitability may limit its upside potential.
Long Term Outlook
In the long term, Bally's faces challenges from increased competition and regulatory headwinds. The company's ability to execute its growth strategy and improve its profitability will be key to its long-term success.
Analyst Recommendations
Analysts covering Bally's have a consensus rating of "Hold." Nine analysts recommend holding the stock, while none recommend buying or selling it.
