The Value Trap: The GEO Group, Inc. (GEO), Boyd Gaming Corporation (BYD)

The GEO Group, Inc. (NYSE:GEO) is offering a substantial bargain with a P/S ratio at 1.43. The broad Real Estate Investment Trusts industry has an average P/S ratio of 8.61, which represents premium over the sector’s 6.1. In the past 13-year record, this ratio went down as low as 0.6 and as high as 1.91. Also, it is up from 0.97 of the total 614 rivals across the globe.

GEO traded at an unexpectedly high level on 01/11/2019 when the stock experienced a 0.83% gain to a closing price of $21.98. The company saw 498874 shares trade hands over the course of the day. Given that its average daily volume over the last 5 days has been 451940 shares a day, this signifies a pretty significant change over the norm.

The GEO Group, Inc. (GEO) Analyst Gushes

Analysts are speculating a 45.59% move, based on the high target price ($32) for the shares that is set to reach in the next 12 months. The analysts, on average, are forecasting a $28.33 price target, but the stock is already up 19.26% from its recent lows. However, the stock is trading at -21.67% versus recent highs ($28.06). Analysts believe that we could see stock price minimum in the $25 range (lowest target price), allowing for another 13.74% jump from its current position. Leading up to this report, we have seen a -3.55% fall in the stock price over the last 30 days and a -9.88% decline over the past 3 months. Overall, the share price is up 11.57% so far this year.

The GEO Group, Inc. (GEO) Price Potential

Heading into the stock price potential, The GEO Group, Inc. needs to grow just 27.39% to cross its median price target of $28. In order to determine directional movement, the 50-day and 200-day moving averages for The GEO Group, Inc. (NYSE:GEO) are $21.54 and $23.97. Given that liquidity is king in short-term, GEO is a stock with 120.8 million shares outstanding that normally trades 1.3% of its float. The stock price recently experienced a 5-day gain of 11.18% with 0.76 average true range (ATR). GEO has a beta of 1.45 and RSI is 58.95.

Investors also need to beware of the Boyd Gaming Corporation (NYSE:BYD) valuations. The stock trades on a P/S of 1.09, which suggests that the shares are attractive compared with peers. The broad Hotels/Resorts industry has an average P/S ratio of 3.23, which is significantly better than the sector’s 136.78. In the past 13-year record, this ratio went down as low as 0.16 and as high as 1.91. Also, it is up from 0.54 of the total 810 rivals across the globe.

Boyd Gaming Corporation (BYD)’s Lead Over its Technicals

Boyd Gaming Corporation by far traveled 38.25% versus a 1-year low price of $18.98. The share price was last seen 0.61% higher, reaching at $26.24 on Jan. 11, 2019. At recent session, the prices were hovering between $25.46 and $26.46. This company shares are 39.98% off its target price of $36.73 and the current market capitalization stands at $2.93B. The recent change has given its price a 10.03% lead over SMA 50 and -35.11% deficit over its 52-week high. The stock witnessed 12.09% gains, -15.57% declines and -31.29% declines for the 1-month, 3-month and 6-month period, respectively. To measure price-variation, we found BYD’s volatility during a week at 4.94% and during a month it has been found around 5.7%.

Boyd Gaming Corporation (NYSE:BYD) Intraday Metrics

Boyd Gaming Corporation (BYD) exchanged hands at an unexpectedly low level of 1712950 shares over the course of the day. Noting its average daily volume at 2662600 shares each day over the month, this signifies a pretty significant change over the norm.

Boyd Gaming Corporation Target Levels

The market experts are predicting a 82.93% rally, based on the high target price ($48) for Boyd Gaming Corporation shares that is likely to be hit in the 52 weeks. Analysts anticipate that traders could see stock price minimum in the $30 range (lowest target price). If faced, it would be a 14.33% jump from its current position. Overall, the share price is up 26.28% year to date.