AMC Entertainment (AMC) Sees a More Significant Dip Than Broader Market: Some Facts to Know

AMC Entertainment (AMC) closed the latest trading day at $4.50, indicating a -0.88% change from the previous session’s end. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Shares of the movie theater operator have depreciated by 5.81% over the course of the past month, underperforming the Consumer Discretionary sector’s gain of 4.45% and the S&P 500’s gain of 2.43%.

The upcoming earnings release of AMC Entertainment will be of great interest to investors. The company is forecasted to report an EPS of -$0.09, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.3 billion, down 7.88% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.85 per share and revenue of $4.61 billion. These totals would mark changes of +64.14% and -4.27%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for AMC Entertainment. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMC Entertainment is currently sporting a Zacks Rank of #3 (Hold).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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