AMC Entertainment (AMC) Registers a Bigger Fall Than the Market: Important Facts to Note

AMC Entertainment (AMC) closed at $1.10 in the latest trading session, marking a -2.23% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.52% for the day. On the other hand, the Dow registered a loss of 1.56%, and the technology-centric Nasdaq decreased by 1.78%.

Coming into today, shares of the movie theater operator had lost 11.81% in the past month. In that same time, the Consumer Discretionary sector lost 2.83%, while the S&P 500 lost 2.25%.

The upcoming earnings release of AMC Entertainment will be of great interest to investors. The company is forecasted to report an EPS of -$0.36, showcasing a 37.93% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $960.48 million, indicating a 11.36% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.42 per share and a revenue of $5.24 billion, indicating changes of +56.25% and +8.12%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AMC Entertainment. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, there's been a 9.14% rise in the Zacks Consensus EPS estimate. AMC Entertainment presently features a Zacks Rank of #3 (Hold).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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AMC Entertainment Holdings, Inc. (AMC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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