AMC Entertainment (AMC) Suffers a Larger Drop Than the General Market: Key Insights

The most recent trading session ended with AMC Entertainment (AMC) standing at $4.22, reflecting a -0.24% shift from the previouse trading day’s closing. This change lagged the S&P 500’s daily loss of 0.02%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.04%.

Heading into today, shares of the movie theater operator had lost 11.51% over the past month, lagging the Consumer Discretionary sector’s gain of 7.27% and the S&P 500’s gain of 3.77% in that time.

The upcoming earnings release of AMC Entertainment will be of great interest to investors. On that day, AMC Entertainment is projected to report earnings of -$0.06 per share, which would represent year-over-year growth of 33.33%. At the same time, our most recent consensus estimate is projecting a revenue of $1.31 billion, reflecting a 6.91% fall from the equivalent quarter last year.

AMC’s full-year Zacks Consensus Estimates are calling for earnings of -$0.83 per share and revenue of $4.61 billion. These results would represent year-over-year changes of +64.98% and -4.24%, respectively.

Any recent changes to analyst estimates for AMC Entertainment should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% 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. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% 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.

Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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