2 value stocks in the consumer cyclical sector to buy now

The consumer cyclical sector represents industries that perform well during economic boom times. With the rapid economic recovery underway and COVID-19 vaccinations in full swing, consumer cyclicals should make a strong comeback from the pandemic-induced recession. Strong consumer confidence and surging retail sales over the past month have boosted cyclical stocks during this period.

According to John Stoltzfus of Oppenheimer Asset Management, the S&P 500 jump 15% to 5,330 by the end of 2022, with consumer discretionary being one of the main beneficiaries.

So, given the current market volatility due to the rapid spread of the omicron variant, we believe investing in cyclical value-consuming stocks Boyd Gaming Corporation (BYD) and Travel + Leisure Co. (NL) could be beneficial. These stocks are well positioned to benefit from the economic recovery.

Boyd Gaming Corporation (BYD)

BYD in Las Vegas, Nevada, is a multi-jurisdictional gaming company that operates in the Las Vegas Locals, Downtown Las Vegas and Midwest & South segments. The Las Vegas Locals segment consists of eight casinos, while the Downtown Las Vegas segment consists of three properties. The Midwest & South segment includes Kansas Star Casino, Amelia Belle Casino, Diamond Jo Dubuque, Par-A-Dice Hotel Casino and others.

On October 13, 2021, Aristocrat Gaming and BYD announced the launch of a cashless payment solution for table games called Boyd Pay Wallet, powered by Aristocrat’s digital wallet technology. Blake Rampmaier, Senior Vice President and CIO of BYD, said, “Boyd Pay is another example of our commitment to leveraging technology to improve the guest experience at our properties.”

BYD’s revenue increased 29.3% year-over-year to $843.06 million for the third quarter ended September 30, 2021. The company’s adjusted earnings were 149. $01 million, an increase of 242.9% year over year. Also, his Adjusted EBITDA grew 47.6% year over year to $314.39 million. And its EPS was up 242.1% year-over-year at $1.30.

Analysts expect BYD’s FY2021 EPS and revenue to rise 3,426.7% and 52.9%, respectively, year-over-year to $4.99 and $3.33 billion. It has exceeded Street’s EPS estimates in each of the past four quarters. Its forward-looking EV/EBITDA and EV/EBIT of 8.73x and 11.66x, respectively, are below industry averages of 10.66x and 13.51x. Over the past year, the stock price has gained 28.4% to close yesterday’s trading session at $63.50.

BYD’s strong fundamentals are reflected in its POWR Rankings. It has an overall rating of B, which equates to a buy in our proprietary rating system. POWR ratings are calculated by considering 118 separate factors, with each factor weighted to an optimal degree.

It has an A rating for quality and a B rating for value. It is ranked No. 7 out of 32 stocks in the Entertainment – ​​Casinos/Gambling industry. Click here to see BYD’s other ratings for growth, momentum, stability and sentiment.

Travel + Leisure Co. (NL)

TNL provides hospitality services and products in the United States and abroad. the Based in Orlando, Florida The Company operates through vacation ownership and travel and membership segments. The Vacation Ownership segment develops, markets and sells vacation ownership interests and provides consumer finance and property management services. The Travel and Membership segment operates various businesses, including home exchange network, vacation exchange brands, travel technology platforms, travel subscriptions, etc.

On September 8, 2021, TNL launched its Travel + Leisure Club, a travel subscription service. The members-only subscription travel club brings Travel + Leisure magazine content to life by enabling members to dream, plan, book and go. Club members have access to preferred rates on featured editorial coverage itineraries, additional savings on travel options, personalized concierge service, exclusive experiences and a free subscription to Travel+ magazine. Leisure.

For its third fiscal quarter. ended September 30, 2021, TNL’s net revenue increased 36.6% year-over-year to $839 million. The company’s net income rose 152.5% year over year to $101 million. And its adjusted EBITDA rose 64% year over year to $228 million.

For its fiscal 2021, TNL’s EPS and revenue are expected to increase 463.8% and 41.3% year-over-year to $3.42 billion and $3.05 billion, respectively. It has exceeded consensus EPS estimates in three of the past four quarters. In terms of forward price/cash flow, TNL’s 10.63x is below the industry average of 12.99x. The stock has gained 17.9% in price over the past year to close yesterday’s trading session at $56.27.

TNL’s POWR ratings reflect this promising outlook. The stock has an overall B rating, which equates to a buy in our proprietary rating system. NL has a B rating for Growth, Value, Sentiment and Quality. Within the Travel – Hotels/Resorts industry, it is ranked #2 out of 20 stocks. To see TNL’s ratings for Momentum and Stability, Click here.


BYD shares were trading at $63.49 per share on Thursday afternoon, down $0.01 (-0.02%). Year-to-date, BYD is down -3.17%, compared to a -1.47% rise in the benchmark S&P 500 over the same period.

About the Author: Dipanjan Banchur

Ever since he was in elementary school, Dipanjan had been interested in the stock market. This allowed him to obtain a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan is particularly interested in reading and analyzing emerging trends in financial markets. Following…

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