Boyd Leads Casinos After Sell-Off Squashed Earnings Optimism (BYD, PNK, MCRI, LVS, WYNN, MGM, SHFL, BYI, WMS, CHDN)

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CASINO INVESTING IDEAS

• Popular long ideas: LVS, MGM, WYNN
• Popular short ideas: LVS, MGM, WYNN
• Top dividend plays: WYNN, LVS, ASCA
• Pro favorites: LVS, MPEL, WYNN

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CASINO COVERAGE

Casinos offering a myriad methods by which and locations where gamblers can put some money on the line

• Macau, Singapore Bolster Las Vegas Q2 Profit (LVS, BYD, MGM, MPEL, ISLE, WYNN)
• Nevada Gaming Revenue Jumps, But Casino Stocks Don't Follow Suit (LVS, MGM, WYNN, PENN, BYD)
• Brean Murray Says Roll The Dice On A Pair Of Casino Stocks (WYNN, LVS, MGM, BYD, ISLE, PENN)

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CASINO METRICS

Avg. Market Cap:	$6.6B
Avg. P/E Ratio:	24.3
Avg. Div Yield:	0.5%

Despite a brief trip into positive territory, optimism from Boyd Gaming’s (BYD) first-quarter earnings report was largely wiped out by fears of Greek debt contagion during Tuesday’s session. The stock finished lower on the day, and after a brief dip this morning, investors are finally turning their attention to the firm’s first-quarter EPS beat and growth outlook for the second half of 2010. Boyd earned a dime in Q1 EPS topping analyst consensus by 3 cents, and CEO Kieth Smith said, “Given the positive developments in our business, combined with the continued improvement in the national economy, we expect to generate year-over-year growth during the second half of 2010.”

As a whole, the Casino Stocks Index has outperformed the S&P 500 by 12% over the past month. Top performers for the period include Boyd, today’s other big winner Pinnacle Entertainment (PNK), and small-cap player Monarch Casino & Resort (MCRI), all three of which have gained more than 30%.

Heavyweights Las Vegas Sands (LVS), Wynn Resorts (WYNN), and MGM Mirage (MGM) are all hanging in the red over the past five sessions. Traders are placing their final bets on MGM prior to tomorrow morning’s earnings report, and the Street will then have until Thursday’s closing bell to weigh in on Sands.

Elsewhere in the gambling sector, five of the Gaming and Slot-Machine Stocks Index’s six components are ahead over the past five sessions, led by Shuffle Master (SHFL), Bally Technologies (BYI), and WMS Industries (WMS).

Meanwhile, Churchill Downs (CHDN) has continued its recent slump despite the firm’s moment in the spotlight during Saturday’s Kentucky Derby.

Anticipation is high for upcoming reports from the casino sector, so investors should keep a close eye on the Casino Stocks Index for performance trends and a suite of other metrics at tickerspy.com.

Tags: BYD, BYI, CHDN, LVS, MCRI, MGM, PNK, SHFL, WMS, WYNN