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AMC Entertainment (AMC) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·2-min read

AMC Entertainment (AMC) closed the most recent trading day at $4.58, moving -1.08% from the previous trading session. This change lagged the S&P 500's daily gain of 0.24%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.43%.

AMC will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMC to post earnings of -$1.49 per share. This would mark a year-over-year decline of 23.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $976.62 million, down 18.64% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$4.38 per share and revenue of $3.52 billion. These totals would mark changes of -305.56% and -35.71%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AMC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.84% lower. AMC currently has a Zacks Rank of #3 (Hold).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AMC in the coming trading sessions, be sure to utilize Zacks.com.


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