Some casino stocks are struggling, but there’s still a name you can gamble on, and the odds are stacked in your favor.iStock_000011392581XSmall-Casino-Pic-340-300x199

Check out Boyd Gaming (NYSE: BYD). The domestic casino and resort company has fared quite well in the month of July.

While the rest of the market has been volatile and trading in mostly negative territory this month, Boyd shares are up sharply.

Boyd’s domestic flavor insulates the company from some of the risks of the larger casinos like MGM Resorts (NYSE: MGM) and Wynn Resorts (NASDAQ: WYNN).

Those larger players have to deal with foreign currency issues, not to mention exposure to China, thanks to operations in Macau.

That said, good news from Macau might have helped lift Boyd higher in July. Barron’s recently noted that Macau could be stabilizing and reversing course. Those potential green shoots helped lift all boats in the sector—including Boyd—early in the month.

Ultimately, what matters for Boyd is valuation. Boyd shares are cheap according to the single most important metric for investing success, the PE Gap, which compares a company’s price-to-earnings ratio to its expected earnings growth rate.

Analysts expect Boyd to grow profits by 48% from the current year to the next. At current prices, shares trade for 45 times current year estimated earnings.

Historically when the PE ratio is less than the expected growth rate you have the ingredients for a stock set to outperform the market.

That has been the case with Boyd and should continue to be the case in the near term.

If the company beats expectations, that will be the catalyst for more gains.

It’s about as close to a sure thing in the stock market as you can get today.

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