AMC Entertainment (AMC) Stock Drops Despite Market Gains: Important Facts to Note

In the latest market close, AMC Entertainment (AMC) reached $4.17, with a -0.48% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.61%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.33%.

The movie theater operator’s shares have seen a decrease of 14.49% over the last month, not keeping up with the Consumer Discretionary sector’s gain of 2.91% and the S&P 500’s gain of 5.36%.

Investors will be eagerly watching for the performance of AMC Entertainment in its upcoming earnings disclosure. In that report, analysts expect AMC Entertainment to post earnings of -$0.06 per share. This would mark year-over-year growth of 33.33%. In the meantime, our current consensus estimate forecasts the revenue to be $1.31 billion, indicating a 6.91% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.83 per share and a revenue of $4.61 billion, signifying shifts of +64.98% and -4.24%, respectively, from the last year.

Investors should also pay attention to any latest changes in 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.29% upward. Right now, AMC Entertainment possesses a Zacks Rank of #2 (Buy).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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