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2023-12-15
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the dynamic stock market realm, the term “best meme stocks” transcends being a mere catchphrase, encapsulating a pivotal movement. Fueled by social sentiment, the recent documentary “Dumb Money” shed light on the remarkable retail trading surge of 2021, which left Wall Street pundits scratching their heads.
Additionally, the impact of meme stocks has been profound, catapulting companies such as GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) into the spotlight, marking a significant chapter in financial history. But it’s important to acknowledge that the appeal of meme stocks goes beyond just their social media fame.
As such, the social media forces driving the meme stock phenomenon are here to stay. As the world ventures deeper into digital realms, the online culture is expected to wield a greater sway over market trends. This evolving investment landscape presents unique opportunities for savvy traders to combine the thrill of viral movements with serious stock trading.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Nvidia (NASDAQ:NVDA), leading in artificial intelligence (AI) chip technology, excels in the stock market with key partnerships like Amazon Web Services, highlighting its role in AI and cloud integration. Concurrently, the company’s strong presence on social media platforms like Reddit, X (formerly Twitter) and Discord enhances community engagement and market visibility, potentially influencing market dynamics.
Financially, its third quarter results were exceptional, with a staggering non-GAAP earnings per share (EPS) of $4.02, exceeding expectations by 63 cents, and a revenue surge to $18.12 billion, up 205.6% year-over-year (YOY). Its data center revenue also set a new record at $14.51 billion, marking significant quarterly and annual growth.
Furthermore, Nvidia’s financial success this year is mainly attributable to the impact of its A100 and H100 chips, instrumental in powering advanced AI training models. Additionally, the company is poised to unveil the GH200 AI chip in mid-2024, a development eagerly anticipated by the tech industry. With staggering financial and technological accomplishments recently, NVDA isn’t just any meme stock, it’s going to be one of the best meme stocks for 2024.
Advanced Micro Devices (AMD)
Source: Joseph GTK / Shutterstock.com
Advanced Micro Devices (NASDAQ:AMD), a global semiconductor leader, has seen an impressive 14.38% surge in the past month. This stellar growth can be primarily attributed to the introduction of AMD’s groundbreaking Ryzen 8040 microchips, which have been a driving factor in the company’s recent success.
Furthermore, the company’s innovation is showcased by the MI300X accelerator microchip now available for purchase, posing a direct challenge to Nvidia’s AI data center chips. The significance of this strategic move is underscored by tech giants Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT) both favoring AMD’s more cost-effective MI300X chips over Nvidia’s pricier H100 chips.
Financially, these developments project a $400 billion total addressable market by 2027, up from a forecast of $150 billion in August. Bolstering this view are strong third quarter results, with non-GAAP EPS at 70 cents, surpassing expectations by 2 cents, and $5.8 billion in revenue reflecting solid 4.1% YOY growth. AMD’s prominence in AI signals a bright future for the company and its investors, making it another one of investor’s top picks for best meme stocks for 2024.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
In 2023, Meta Platforms reinforced its dominance in the social media realm through key AI innovations. Demonstrating its technological prowess, Meta’s AI-driven products, coupled with its collaboration in the AI Alliance with IBM (NYSE:IBM), highlight its leadership in AI development, signifying a strategic shift towards redefining digital interactions.
Moreover, Meta’s recent partnership with Amazon (NASDAQ:AMZN) exemplifies its innovative approach. This collaboration aims to streamline the shopping experience by integrating Amazon ads into Meta products, enabling users to shop and checkout directly. This synergy not only enhances user convenience but also promises mutual benefits for both Meta and Amazon.
Financially, Meta showcased robust performance, with a GAAP EPS of $4.39, surpassing expectations by 76 cents. Its revenue escalated to $34.15 billion, a 23.2% increase from the previous year, outstripping forecasts by $700 million. This financial success is further complemented by enhanced user engagement on Facebook and Instagram, a testament to the efficacy of Meta’s AI-enhanced feed algorithms.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 3 of the Best Meme Stocks to Double Down On in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-12
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AMC
|
For Immediate Release
Chicago, IL – December 15, 2023 – Today, Zacks Equity Research discusses Royal Caribbean Cruises Ltd. RCL, Live Nation Entertainment, Inc. LYV and AMC Entertainment Holdings, Inc. AMC.
Industry: Leisure & Recreation Services
Link: https://www.zacks.com/commentary/2197829/3-stocks-to-watch-from-leisure-recreation-services-industry
The Zacks Leisure and Recreation Services industry is benefiting from optimizing business processes, consistent strategic partnerships and digital initiatives. The robust demand for concerts, improving bookings for cruise operators and higher per capita spending at theme parks are supporting the industry. Industry players like Royal Caribbean Cruises Ltd., Live Nation Entertainment, Inc. and AMC Entertainment Holdings, Inc. are likely to gain in their respective fields owing to the factors mentioned above.
Industry Description
The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, theme park makers, resort operators and event organizers. Some industry players have ski and sports businesses, while some operate health and wellness centers onboard cruise ships and at destination resorts.
Many companies are engaged in hospitality and related businesses. A few of the industry participants also provide weight management products and services. These companies primarily thrive on overall economic growth, which fuels consumer demand for products. Demand, highly dependent on business cycles, is driven by a healthy labor market, rising wages and a growing disposable income.
3 Trends Shaping the Leisure & Recreation Services Industry's Future
U.S. Economy Gradually Getting Back on Track: The Federal Reserve decided to keep interest rates unchanged, and Jerome Powell, the head of the U.S. central bank, mentioned that the unprecedented shift toward tighter monetary policy is probably finished. This comes as inflation is decreasing more rapidly than anticipated and the possibility of considering reductions in borrowing costs coming "into view."
Robust Demand Aids Cruise Operators: The cruise industry is benefiting from strong demand for cruising and accelerating booking volumes. The industry is benefiting from solid bookings concerning North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry. However, the cruise operators' operations are likely to be influenced by the uncertainties related to the Russian invasion of Ukraine. Geopolitical developments have pushed fuel curves higher.
Theme Park Operators & Live Entertainment Companies Bouncing Back: The theme park industry has been benefiting from robust demand. Theme park operators have been gaining from improving visitation. Consumer spending at theme parks continues to rise. Live entertainment firms have benefited from pent-up live event demand and robust ticket sales.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #90, which places it in the top 36% of 251 Zacks industries.
The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry's position in the top 50% of the Zacks-ranked industries results from a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in the group's earnings growth potential. Since Sep 30, 2023, the industry's earnings estimates for 2023 have increased 11.1%.
Before we present a few stocks that investors can consider, let's analyze the industry's recent stock-market performance and valuation picture.
Industry Underperforms the S&P 500
The Zacks Leisure and Recreation Services industry has underperformed the Zacks S&P 500 composite but has outperformed its sector in the past year. Stocks in the industry have gained 14.9% in the past year compared with the broader sector's increase of 13.5%. The S&P 500 has risen 19.7% in the said time frame.
Valuation
On the basis of the forward 12-month EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization), which is a commonly used multiple for valuing debt-laden leisure service stocks, the industry trades at 54.43X compared with the S&P 500's 19.8X and the sector's 13.09X. In the past five years, the industry has traded as high as 59.36X and as low as 6.20X, with the median being 9.48X.
3 Leisure and Recreation Services Stocks to Keep an Eye On
Royal Caribbean Cruises: Based in Miami and incorporated in 1985, Royal Caribbean Cruises is a cruise company. It has been benefiting from solid demand for cruising and acceleration in booking volumes. Also, the emphasis on strong pricing (on closer-in-demand) bodes well. The company stated that the momentum has continued into 2024, with booked load factors and rates surpassing those of all previous years. Given the full fleet resumption and load factors at high prices, it expects customer deposits to return to typical seasonality in the upcoming periods.
Shares of this Zacks Rank #1 (Strong Buy) company have surged 120.4% in the past year. In 2023, its sales and earnings are expected to witness growth of 57.7% and 187.9%, respectively, from the prior year's reported levels. You can see the complete list of today's Zacks #1 Rank stocks here.
Live Nation Entertainment: The company has been benefiting from pent-up demand for live events, robust ticket sales and the sponsorship and advertising business. Also, the emphasis on new client and venue additions bodes well. Given the strength in consumer demand and confirmed sponsorship activity (fully committed) at more than $1 billion in revenues, the momentum is likely to persist in the upcoming periods.
Shares of this Zacks Rank #1 company have gained 25.4% in the past year. For 2023, its sales and earnings are expected to grow 28.6% and 132.8%, respectively, from the prior year's reported levels.
AMC Entertainment: AMC Entertainment is benefiting from attendance growth. As the number and quality of movie titles from the company's studio partners are notably increasing, movie theatres are seen captivating audiences and driving attendance back to AMC theatres.
Shares of this Zacks Rank #3 (Hold) company have declined 87.8% in the past year. In fiscal 2023, its sales and earnings are expected to witness growth of 23% and 76%, year over year, respectively.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-12
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors know that the current expectations project rate cuts as early as March. The news is a major positive for the economy overall and suggests that we have avoided a recession. It affects stocks, including everything from value to growth to meme stocks.
That’s where we’ll be focusing today in this article: meme stocks. Generally speaking, meme stocks are becoming more attractive because they are riskier and growth-oriented. Those kinds of firms tend to do well in lower-rate environments. However, investing is never as simple as that. So, let’s look at seven of the more prominent shares in that conversation.
GameStop (GME)
Source: shutterstock.com/EchoVisuals
I think the outlook for GameStop (NYSE:GME) remains the same whether interest rates are high or low. I don’t think any investors should run the risk inherent in owning GameStop.
The company just released earnings, which weren’t good. GameStop’s revenues were worse than expected. However, bullish Investors are taking heart in the company’s announcement that it will alter its investment strategy. The company announced that it will now invest in equities, whereas it had previously directed its cash toward primarily government securities.
Investors should ignore this as a purported positive catalyst.
Hardware and software sales fell by roughly $30 million during the period. GameStop continues to head in the wrong direction. The only positive for the company really was that its net loss narrowed from $94.7 million to $3.1 million during the period. However, that was only a result of the drastic decline in SG&A expenses. Even with rate cuts that promise to pull everything higher in 2024, GME stock remains one to avoid.
AMC (AMC)
Source: rblfmr / Shutterstock.com
If you mention GameStop and its stock, you must also mention AMC (NYSE:AMC). While some meme investors will continue to remain bullish on AMC, I think it’s also wise to avoid it along with GameStop.
Not much has happened since AMC last reported results in early November. Investors who remain curious about AMC should simply look at those earnings results and the company’s decisions immediately after that release.
The results themselves were arguably positive. AMC generated a small profit of $12.3 million and an eight-cent EPS. Revenues increased by 45.2%, reaching $1.405 billion. Yet, AMC shares continue to move lower after the earnings report.
That’s partially explicable by decisions in the immediate wake of those earnings. AMC announced an additional stock offering that further dilutes current shareholder value. Further, movie attendance is still 16% lower than it was before the pandemic. That strongly suggests that the movie theater experience is not as attractive as it formerly was, which bodes very poorly for AMC.
AMD (AMD)
Source: JHVEPhoto / Shutterstock.com
AMD (NASDAQ:AMD) is going to continue what it does and challenge the competition for artificial intelligence market share. Pundits will continue to argue whether AMD has any realistic chance of catching its main rival, Nvidia. My advice, for what it’s worth, would be to avoid that argument and invest in both.
AMD recently announced its Instinct M1 300x accelerators at an event in San Jose. The company states that the new chips surpass Nvidia’s H100 chips in many respects. AMD claims that its chips will exceed application specifications for large language models (LLMs) but at a fraction of the price.
So, what should investors take away from the news? The answer is simple: AMD will continue to challenge Nvidia and its dominant position in the generative AI space and AI in general.
Yes, Nvidia’s chips and its talent are very likely better overall. That doesn’t mean there isn’t much room for AMD and others to carve out significant, profitable niches within the AI boom.
Tesla (TSLA)
Source: Khairil Azhar Junos/Shutterstock.com
Discussion about Tesla (NASDAQ:TSLA) and its stock is currently being dominated by news regarding the Cybertruck.
Deliveries of the much anticipated electric truck have begun in California and Texas. The company announced that deliveries in further states are to follow in 2024. It looks like those deliveries are for the top-of-the-line ‘Cyber Beast’ version. It also appears that those deliveries cost just above $122,000. It was previously expected that the top-of-the-line Cybertruck would cost just under $100k.
At the same time, investing in Tesla is really about whether to invest in the company as its profitability decreases. Tesla has slashed the prices on various models throughout 2023. The company is moving toward a model that relies heavily on volume to capture a more significant market share. I don’t think that invalidates Tesla as an investment at all. It remains a straightforward question: are there any better EV stocks? The answer is no.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
As mentioned in my discussion of AMD, I believe in Nvidia (NASDAQ:NVDA) and its stock. It isn’t a case of choosing A or B about the discussion of AMD and Nvidia. Choose both.
Nvidia has skyrocketed in 2023 because it is the leading chip manufacturer concerning the generative AI boom. The company’s H100 and A100 chips have been in high demand because they are the best. AMD’s new chips promise to challenge those chips and their dominance in data center applications.
Of course, Nvidia also recently announced its h200 chips, an improvement upon its h100 chips. Those chips are expected to be commercially available sometime in the second quarter of 2024. AMD’s new chip is also expected to be commercially available around the same time.
Both companies will continue to compete for market share in the sector. Nvidia h100 chips are in Greater demand, but AMD and its shares have not faltered at the same time. That means that the market understands that AMD is very much a competitor in the space. In other words, invest in both Nvidia and AMD for a chance at continued gains due to generative AI and large language models.
WeWork (WEWKQ)
Source: bbernard / Shutterstock
WeWork (OTCMKTS:WEWKQ) is and was a poorly run company in weak stock that investors should avoid.
Sometimes, you have to laugh at the statements that come out of the mouths of the company’s management. The company very recently filed for Chapter 11 bankruptcy and is currently in the process of restructuring. It has failed. It is hardly the time to make bold, arguably arrogant statements regarding its strengths. Yet CEO David Tolley Continues to refer to WeWork as the “leader in flexible work.”
WeWork is a leader in the space, but it’s a space that includes very few other firms. The company took on more than 4 billion dollars in debt to develop areas for remote workers for which demand never materialized. Now, the company Is rejecting 60 of those leases to slash its debt by roughly $3 billion. The only thing we work has proven to investors is that it’s phenomenally inept. No one should believe in the company, its leaders, or its forward vision.
Peloton (PTON)
Source: MIA Studio / Shutterstock.com
Peloton (NASDAQ:PTON) continues to deliver losses to investors. The entire purpose of a stock is to increase in value, have growing earnings, and provide value overall to investors. Peloton is not going to do that, which is why investors must avoid it.
Investors need to do nothing more than look at the company’s fundamentals to understand why it is a poor investment. The company’s membership numbers continue to decline. The number of Peloton members fell by 1% quarter over quarter. While that isn’t a significant decline and suggests that the membership losses are near zero, it’s still not a reason to invest.
Peloton reported a net loss of $159.4 million this quarter. Evidently, the company expanded too fast to take advantage of pandemic shutdowns and doesn’t have a sound business. There’s not much more to say about it Other than to reiterate that investing in PTON shares is a bad idea.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-12-11
|
AMC
|
The Zacks Leisure and Recreation Services industry is benefiting from optimizing business processes, consistent strategic partnerships and digital initiatives. The robust demand for concerts, improving bookings for cruise operators and higher per capita spending at theme parks are supporting the industry. Industry players like Royal Caribbean Cruises Ltd. RCL, Live Nation Entertainment, Inc. LYV and AMC Entertainment Holdings, Inc. AMC are likely to gain in their respective fields owing to the factors mentioned above.
Industry Description
The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, theme park makers, resort operators and event organizers. Some industry players have ski and sports businesses, while some operate health and wellness centers onboard cruise ships and at destination resorts. Many companies are engaged in hospitality and related businesses. A few of the industry participants also provide weight management products and services. These companies primarily thrive on overall economic growth, which fuels consumer demand for products. Demand, highly dependent on business cycles, is driven by a healthy labor market, rising wages and a growing disposable income.
3 Trends Shaping the Leisure & Recreation Services Industry's Future
U.S. Economy Gradually Getting Back on Track: The Federal Reserve decided to keep interest rates unchanged, and Jerome Powell, the head of the U.S. central bank, mentioned that the unprecedented shift toward tighter monetary policy is probably finished. This comes as inflation is decreasing more rapidly than anticipated and the possibility of considering reductions in borrowing costs coming “into view.”
Robust Demand Aids Cruise Operators: The cruise industry is benefiting from strong demand for cruising and accelerating booking volumes. The industry is benefiting from solid bookings concerning North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry. However, the cruise operators’ operations are likely to be influenced by the uncertainties related to the Russian invasion of Ukraine. Geopolitical developments have pushed fuel curves higher.
Theme Park Operators & Live Entertainment Companies Bouncing Back: The theme park industry has been benefiting from robust demand. Theme park operators have been gaining from improving visitation. Consumer spending at theme parks continues to rise. Live entertainment firms have benefited from pent-up live event demand and robust ticket sales.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #90, which places it in the top 36% of 251 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries results from a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in the group’s earnings growth potential. Since Sep 30, 2023, the industry's earnings estimates for 2023 have increased 11.1%.
Before we present a few stocks that investors can consider, let’s analyze the industry’s recent stock-market performance and valuation picture.
Industry Underperforms the S&P 500
The Zacks Leisure and Recreation Services industry has underperformed the Zacks S&P 500 composite but has outperformed its sector in the past year. Stocks in the industry have gained 14.9% in the past year compared with the broader sector’s increase of 13.5%. The S&P 500 has risen 19.7% in the said time frame.
One-Year Price Performance
Valuation
On the basis of the forward 12-month EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization), which is a commonly used multiple for valuing debt-laden leisure service stocks, the industry trades at 54.43X compared with the S&P 500’s 19.8X and the sector’s 13.09X. In the past five years, the industry has traded as high as 59.36X and as low as 6.20X, with the median being 9.48X, as the charts below show.
EV/EBITDA Ratio (F12M) Compared With S&P
3 Leisure and Recreation Services Stocks to Keep an Eye On
Royal Caribbean Cruises: Based in Miami and incorporated in 1985, Royal Caribbean Cruises is a cruise company. It has been benefiting from solid demand for cruising and acceleration in booking volumes. Also, the emphasis on strong pricing (on closer-in-demand) bodes well. The company stated that the momentum has continued into 2024, with booked load factors and rates surpassing those of all previous years. Given the full fleet resumption and load factors at high prices, it expects customer deposits to return to typical seasonality in the upcoming periods.
Shares of this Zacks Rank #1 (Strong Buy) company have surged 120.4% in the past year. In 2023, its sales and earnings are expected to witness growth of 57.7% and 187.9%, respectively, from the prior year’s reported levels. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: RCL
Live Nation Entertainment: The company has been benefiting from pent-up demand for live events, robust ticket sales and the sponsorship and advertising business. Also, the emphasis on new client and venue additions bodes well. Given the strength in consumer demand and confirmed sponsorship activity (fully committed) at more than $1 billion in revenues, the momentum is likely to persist in the upcoming periods.
Shares of this Zacks Rank #1 company have gained 25.4% in the past year. For 2023, its sales and earnings are expected to grow 28.6% and 132.8%, respectively, from the prior year’s reported levels.
Price and Consensus: LYV
AMC Entertainment: AMC Entertainment is benefiting from attendance growth. As the number and quality of movie titles from the company’s studio partners are notably increasing, movie theatres are seen captivating audiences and driving attendance back to AMC theatres.
Shares of this Zacks Rank #3 (Hold) company have declined 87.8% in the past year. In fiscal 2023, its sales and earnings are expected to witness growth of 23% and 76%, year over year, respectively.
Price and Consensus: AMC
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-11
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The best credit cards to buy for rewards points. Tips to build passive income by buying vending machines and car washes. Strategies for paying off debt – some more convoluted than others. If you’ve spent long enough scrolling on TikTok, you’ve surely found yourself in the corner of the app known as FinTok, where influencers and scammers alike thrive on sharing financial advice.
TikTok has skyrocketed in popularity since its launch in 2016, creating one of the most popular platforms for digital search. One-third of Generation Z even reports “routinely” using TikTok for financial guidance.
But anyone can join TikTok and post advice-driven content. This reality has created a similar, skyrocketing trend of users facing material losses after following bad advice or falling for outright scams. The National Legal Center reported an uptick in cases involving TikTok misadventures.
That means it’s more important than ever to evaluate both the content and the creator when thinking about acting on FinTok advice. No one knows this more than Erika Kullberg, an attorney and personal finance expert who has 9.3 million followers on TikTok.
How to Spot and Avoid TikTok Scams
Much of Kullberg’s work centers around making knowledge accessible. After paying off more than $225,000 in student loans in less than 2 years, she turned to social media to start sharing her newfound financial knowledge with others.
It may seem absurd to think about taking financial advice from a seemingly random TikTok creator. After all, to legally serve as a financial advisor in the United States, you must take multiple qualifying exams. But on FinTok, anyone can post content where they offer insights and advice on what people should do with their money. And while this video-centric format can be engaging, that doesn’t mean the advice is always good. Popular narratives on FinTok often center around getting rich quickly and making risky bets as a means of doing so.
Kullberg advises everyone to steer clear of “anyone saying anything with certainty about the stock market,” such as TikTokers promising high returns or claiming that that an investment will rise by any specific percentage.
“The truth is, in the world of investing, the get-rich-quick methods are typically the scams out there,” she told InvestorPlace in an exclusive interview. “The get-rich-slow [strategies] are the only things that actually work.”
Step 1: Investigate the Influencer
The red flags for investors don’t stop at the advice they are giving when it comes to TikTok scams, though. Kullberg also highlights the importance of looking into someone’s professional history before following theirinvestment advice An important question to consider is how easily the creator’s background can be verified.
“I think a big warning sign social media users should look out for when they are unsure if a creator is legitimate is if they hide their background,” Kullberg said. “You should be easily able to confirm their education or professional experience by looking at their LinkedIn profile or some sort of business website. If they don’t seem to exist outside of TikTok, I’d be cautious.”
Eric Hazard, CEO of financial communications agency Vested Ventures, stresses the importance of evaluating a TikTok commentator’s financial experience and how easy it is to find. He also highlights the importance of content creators providing disclaimers when discussing investments. A lack of transparency from creators should alert investors to potential scams.
“A credible FinTok influencer should base their advice on sound investment principles and data-driven insights rather than speculative or high-risk strategies,” Hazard told InvestorPlace. “They should encourage practices like diversification, long-term investing, and thorough research, which are hallmarks of prudent financial management.”
Step 2: Focus on the Long Term… Not Get-Rich-Quick Schemes
Regardless of someone’s background, it is crucially important to consider one question; do their strategies center around building wealth quickly or slowly? If they promote any type of get-rich-quick narrative, investors should approach with extreme caution. Kullberg stresses the importance of looking at 10-, 20- and 30-year horizons. “When you’re a long-term investor, that’s what matters, not what happens this month or next month,” she adds.
This likely means avoiding plays on meme stocks. These companies might experience a slight burst thanks to social media momentum, but they rarely demonstrate any sustainable growth. Popular examples include GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC), both of which have struggled significantly over the past six months.
Social media has provided a convenient venue for meme stock investors to connect and share ideas. But it has also led to a rise in meme stock-related scams. In 2023, multiple social media influencers, including @MrZackMorris, were charged with orchestrating a pump-and-dump scheme that scammed retail investors out of $114 million.
This is just one example of why investors should cast an eye toward long-term profits, rather than the short-term gains that meme stock traders often tout. Kullberg further urges investors to avoid making an investment based purely on social media hype. “If someone is telling you to buy a single stock and you buy that stock on the basis of what [you] see on social media, that’s not the right way to do it.”
The Bottom Line: Scrolling Safely
With social media platforms consistently flooded with investment information, it can be hard to separate dangerous misinformation from TikTok scams. But content consumers have the power to investigate a creator’s background and evaluate who they are. They can also break down someone’s investment strategy and assess what they are basing their investment recommendations on.
The best strategies should center around building wealth slowly over time, not turning quick profits, even when many people are pushing the same narrative. There are plenty of red flags that anyone can look for from social media content creators, even if they are new to the world of investing.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.
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The post Social Media Star Erika Kullberg Shares How to Avoid TikTok Scams and Get Rich the Right Way appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-07
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AMC
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Below is Validea's guru fundamental report for AMC ENTERTAINMENT HOLDINGS INC (AMC). Of the 22 guru strategies we follow, AMC rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
AMC ENTERTAINMENT HOLDINGS INC (AMC) is a small-cap growth stock in the Motion Pictures industry. The rating using this strategy is 40% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of AMC ENTERTAINMENT HOLDINGS INC
AMC Guru Analysis
AMC Fundamental Analysis
More Information on Kenneth Fisher
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-05
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In one year’s time, the stock of AMC Entertainment (NYSE:AMC), which currently operates 950 movie theatres and is the market leader in the U.S., plunged from nearly $90 a share to $7, losing about 90% of its previous value. What battered AMC’s stock could be distilled into one phrase: Covid-19. Afraid of catching a deadly disease, consumers stopped going out to movie theaters, preferring to stay home and watch via streaming services.
In fact, during the height of the pandemic in early 2021, AMC’s CEO Adam Aron was forced to close every AMC theatre, which covered 10,700 screens in 15 countries. Revenue plummeted, and AMC avoided bankruptcy four times by the end of that year.
The New York Times in a January 2021 profile said Aron was in such a difficult situation that some in the industry called him a “traitor” and others a “trailblazer.”
AMC Stock Emerges From Covid-19
Now that the pandemic has faded, many consumers are returning to see films such as Barbie, Oppenheimer, and Killers of the Flower Moon. Is AMC about to get a boost in its revenue and stock price?
Indeed, in its 2022 annual report, to recover its past strength, AMC’s strategy included 1) Expanding its footprint in new areas and closing underperforming theatres, 2) Looking for new opportunities to expand the AMC brand, 3) Exploring attractive acquisitions, 4) Increasing its Stubs loyalty programs, 5) Offering liquor and more meals at its food stands.
The company is beginning to show signs of bouncing back. In fact, in the second quarter of 2023, AMC’s total revenue spiked by 15.6% over the past year to $1.35 billion in the second quarter from April to June, beating the $1.29 billion expected by analysts, which included a 12% spurt in attendance.
But James Goss, a senior research analyst at Barrington Research in Chicago, isn’t sure that AMC’s stock price is about to revive. He lists AMC as “market perform” and doesn’t recommend investors buy shares.
Goss praised Aron for doing a relatively good job of helping to turnaround AMC. “Issues have less to do with its current success at the box office and more to do with its financial condition,” Goss cited. In fact, many individual investors have supported Aron’s efforts despite the stock dips over the last year.
The Bottom Line
What’s weighing AMC stock down is “its significant amount of debt rather than how it’s doing at the box office,” Goss said. He pointed out that the “leveraged interest expenses significantly eat up most of what they take in.” Moreover, the writers’ and actors’ strikes will also slow down new movies coming to screens.
Goss acknowledged that “operationally [AMC] has significant pluses” with its many screens and IMAX theatres. But despite its low stock price, compared to its heights a year ago, Goss is not recommending the stock.
On the date of publication, Gary Stern did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Gary Stern is a freelance financial writer and the co-author of From Scrappy to Self-Made: What Entrepreneurs Can Learn from an Ethiopian Refugee About Turning Roadblocks into an Empire (published by McGraw Hill, 2023).
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The post AMC Stock Is Down 90% But This Analyst Still Says It’s Not a ‘Buy’ appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-04
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AMC
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If I could only use one word to describe the cryptocurrency market, it would be "volatile." Most investors already know this.
But some individual cryptos have been on wilder rides than others.
Look at Shiba Inu (CRYPTO: SHIB). Its price climbed to astronomical levels in 2021, only to come crashing back down. It's currently 91% below its peak price.
Nonetheless, this has still been a very successful investment. If you were bold enough to invest $10,000 in Shiba Inu around the time of its launch in August 2020, you'd be sitting on more than $1 billion right now. This translates to a remarkable 10,200,000% rate of return. The Nasdaq Composite index has risen by 22% during the same period.
Let's unpack this meme token's history, then figure out if it's a good idea to invest today.
Hype and speculation
Shiba Inu's public launch couldn't have been better timed. The pandemic recovery in markets had begun, and traders and investors had the cash and the time to bet on various assets.
But things really took off the following year.
In 2021, a top story in the stock market was the rise of meme stocks, like AMC Entertainment and GameStop. This investor enthusiasm spilled over into the crypto world. And more specifically, it catapulted Shiba Inu that year.
With 589 trillion tokens currently in circulation and no adoption in terms of real-world utility, this digital asset's price now reflects nothing more than the amount of support it receives from its avid community of followers.
Even more alarming, while the overall cryptocurrency market has rallied in 2023, Shiba Inu's price has remained little changed. Interest is waning.
Fundamentals matter
To say that the past year-and-a-half or so has been a wake-up call for the cryptocurrency industry would probably be an understatement. Numerous companies in the industry failed, with high-profile figures facing criminal charges and fines. Trust is scarce.
Add to this shakeout tighter macro conditions, the result of higher interest rates, and it's not hard to believe that investors might be more risk-averse these days. Putting money into meme tokens purely for speculative reasons to ride the hype wave can no longer be viewed as a sound investment strategy.
So how do things change for investors? I believe that fundamentals will matter most in the years ahead.
In Shiba Inu's case, investors need to start asking what value this blockchain network actually provides or what problem it solves. I think these answers are hard to come by.
To frame things another way, imagine if Shiba Inu vanished. I suspect that this would cause no harm to the daily lives of most people. You can say the same thing about the vast majority of cryptocurrencies out there.
Some crypto bulls might quickly point to the promise of decentralized applications for finance or gaming protocols, and even non-fungible tokens. But Shiba Inu doesn't hold a candle to a network like Ethereum, which is the dominant blockchain that utilizes smart contracts.
According to a report from Electric Capital, a venture investment firm, Shiba Inu doesn't even crack the list of top 100 blockchains when it comes to developer activity. How does the network plan to introduce new updates and test new features, which are essential to drawing in more users, if it can't even attract developers?
Viewing Shiba Inu through a fundamentals-based approach, the best thing to do is avoid this token. Its past returns were impressive, but the future doesn't look promising.
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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-30
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AMC
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Markets have been on a rally in November as inflation continues to show signs of cooling, raising hopes that the Federal Reserve may be done with its interest rate hikes. The upbeat sentiment among investors is evident from the jump in consumer confidence in November, following a three-month decline.
The Conference Board said on Nov 28 that Consumer Confidence came in at 102 in November, surpassing estimates of a rise to 101 and well above October’s downwardly revised reading of 99.1.
More importantly, consumers' expectations or the Expectations Index, which measures the outlook for business, income and labor market conditions over the next six months, jumped to 77.8 in November from 72.7 in October.
Any reading below 80 on the Expectations Index has historically signaled an impending recession within the following year. However, despite this, the month-over-month increase in percentage terms was noteworthy.
The central bank has hiked interest rates by 525 basis points over the past 18 months but left its benchmark policy rate unaltered in its past two FOMC meetings. Cooling inflation has raised hopes that the Federal Reserve may not hike interest rates further in its December policy meeting.
Investors are now expecting a 97% chance that the Fed will keep its benchmark policy rate unchanged in its current range of 5.25-5.5%, according to the CME FedWatch tool.
This has seen the market rallying throughout November. The Dow, the S&P 500 and the Nasdaq are on track to finish this month up nearly 7.2%, 8.6% and 11.1%, respectively.
Our Choices
Given the upbeat mood and soaring consumer confidence, investors should place their bet on five consumer discretionary stocks likeAMC Entertainment Holdings, Inc. AMC, NIKE, Inc. NKE, Royal Caribbean Cruises Ltd. RCL, Comcast Corporation CMCSA and Live Nation Entertainment, Inc. LYV. Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AMC Entertainment Holdings, Inc. operates as a theatrical exhibition company primarily in the United States and internationally. AMC owns or has interests in theatres and screens. AMC Entertainment Holdings, Inc. is based in Leawood, KS.
AMC Entertainment’s expected earnings growth rate for the current year is 75.2%. The Zacks Consensus Estimate for current-year earnings has improved 24.5% over the past 60 days. AMC presently carries a Zacks Rank #2.
NIKE, Inc. is engaged in the business of designing, developing and marketing of athletic footwear, apparel, equipment and accessories, and services for men, women and children worldwide. With the help of a strong brand portfolio, including Nike Pro, Nike Golf, Nike+ and Air Jordan, NKE offers premium, well-designed and high-quality products in line with the latest customer trends.
Nike’s expected earnings growth rate for the current year is 15.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. NKE currently has a Zacks Rank #2.
Royal Caribbean Cruises Ltd. owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, RCL has a 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises. Royal Caribbean Cruises' brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.
Royal Caribbean Cruises' expected earnings growth rate for the current year is 187.9%. The Zacks Consensus Estimate for current-year earnings has improved 7.3% over the past 90 days. RCL currently has a Zacks Rank #2.
Comcast Corporation is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal and Sky. Beginning first-quarter 2023, CMCSA changed its presentation of segment operating results around its two primary businesses, Connectivity & Platforms, and Content & Experiences.
Comcast Corporation’s expected earnings growth rate for the current year is 8%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. CMCSA presently carries a Zacks Rank #2.
Live Nation Entertainment, Inc. operates as a live entertainment company. LYV operates through the Concerts, Ticketing, and Sponsorship and Advertising segments. Live Nation Entertainment has more than 580 million fans across all of its concerts and ticketing platforms in 46 countries.
Live Nation Entertainment’s expected earnings growth rate for the current year is 132.8%. The Zacks Consensus Estimate for current-year earnings has improved 47.5% over the past 60 days. LYV presently has a Zacks Rank #2.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-29
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AMC
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By Medha Singh
Nov 29 (Reuters) - GameStop GME.N shares looked set to extend their rally on Wednesday, after jumping 13% in premarket trading, suggesting a broader recovery in the market was spurring appetite for speculative bets among retail traders.
The videogame retailer's shares were last trading at $15.30 and were among the most actively traded on the New York Stock Exchange at 8:54 a.m. ET.
Individual investors purchased $1.92 million worth of GameStop shares on a net basis on Tuesday, their highest since Aug. 6, data from Vanda Research showed.
The optimism in the market is attracting retail traders, indicating the market rally is overstretched, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
AMC Entertainment AMC.N, another favorite among retail traders, rose nearly 3.6% to $6.94 on Wednesday.
The recovery in meme stocks comes as the S&P 500 .SPX closes in on its highest level for 2023 on hopes U.S. interest rates have peaked, breathing some life into speculative trading that has struggled this year.
Both, GameStop and AMC were among the most discussed by traders on social media site stocktiwts.com on Wednesday.
The sudden interest in GameStop comes ahead of its third-quarter results on Dec. 6. Analysts expect its net loss to narrow to $25.6 million from $93.4 million a year earlier.
"Some short sellers may be concerned both by this price move but also that GameStop will release better-than-expected earnings next week," said Peter Hillerberg, co-founder of Ortex.
About 21.6% of GameStop's publicly available shares are shorted, according to data and analytics firm Ortex.
Shares of GameStop are down 27% in 2023 up to Tuesday's close, while those of AMC have shed 80% of their value.
(Reporting by Medha Singh in Bengaluru; Editing by Krishna Chandra Eluri and Anil D'Silva)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X, formerly Twitter: @medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-29
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AMC
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Nov 29 (Reuters) - Shares of retail traders' darling GameStop GME.N jumped 12.5% in strong premarket trading volume on Wednesday, looking to build on a rally from the previous session as a broader recovery in markets spurred appetite for speculative bets.
The videogame retailer's shares were last at $15.12, the third most actively traded stock on the New York Stock Exchange at 5:50 a.m. ET.
On Tuesday, GameStop shares had their biggest one-day percentage gain in eight months on no clear news catalyst.
AMC Entertainment AMC.N, another favorite among retail traders, rose nearly 4% to $6.95.
Both GameStop and AMC were among the most discussed by traders on social media site stocktiwts.com on Wednesday.
The recovery in meme stocks comes as the S&P 500 .SPX closes in on its highest level of 2023 on hopes U.S. interest rates have peaked, breathing some life into speculative trading that has struggled this year.
"The market optimism now vacuum retail traders in – and it's the ultimate signal that the (market) rally is overstretched," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
GameStop shares have slumped 27% in 2023 up to Tuesday's close, while AMC had wiped out 80% of its value.
On the options side, open interest put-to-call ratio in GameStop stood at 0.45, indicating traders' bullish positioning.
The videogame retailer is expected to report third-quarter results next week on Dec. 6.
(Reporting by Medha Singh in Bengaluru; Editing by Krishna Chandra Eluri)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X, formerly Twitter: @medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-29
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AMC
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For Immediate Release
Chicago, IL – November 29, 2023 – Stocks in this week’s article are AMC Entertainment AMC, DocuSign DOCU, Vivid Seats SEAT, Lamb Weston LW and Fiverr International FVRR.
Why You Should Bet on These 5 Stocks with Rising P/E
Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of AMC Entertainment, DocuSign, Vivid Seats, Lamb Weston and Fiverr International.
Rising P/E: A Useful Tool
The concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, a stock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
Here are five out of the 76 stocks:
AMC Entertainment: The Zacks Rank #2 operates as a theatrical exhibition company primarily in the United States and internationally. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of AMC for the past four quarters is 52.97%.
DocuSign: The Zacks Rank #2 company is a global provider of cloud-based software. The company’s DocuSign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process.
The average earnings surprise of DOCU for the past four quarters is 27.1%.
Vivid Seats: Vivid Seats Inc. provides a marketplace, which utilizes its technology platform to connect buyers with ticket sellers. Vivid Seats Inc., formerly known as Horizon Acquisition Corporation, is based in Chicago.
The average earnings surprise of SEAT for the past four quarters is 114.58%.
Lamb Weston: This Zacks Rank #1 company is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and also provides a range of appetizers.
The average earnings surprise of LW for the past four quarters is 46.16%.
Fiverr International: This Zacks Rank #2 company provides an online marketplace for selling goods and services.
The average earnings surprise of FVRR for the past four quarters is 24.98%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2190129/why-you-should-bet-on-5-top-ranked-stocks-with-rising-pe
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
Lamb Weston (LW) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
Fiverr International (FVRR) : Free Stock Analysis Report
Vivid Seats Inc. (SEAT) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-28
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AMC
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Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of AMC Entertainment AMC, DocuSign DOCU, Vivid Seats SEAT, Lamb Weston LW and Fiverr International FVRR.
Rising P/E: A Useful Tool
The concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
The Winning Strategy
In order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.
EPS growth estimate for the current year is greater than or equal to last year’s actual growth
Percentage change in last year EPS should be greater than or equal zero
(These two criteria point to flat earnings or a growth trend over the years.)
Percentage change in price over four weeks greater than the percentage change in price over 12 weeks
Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks
(These two criteria show that price of the stock is increasing consistently over the said timeframes.)
Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500
Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500
(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)
Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%
(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)
In addition, we place a few other criteria that lead us to some likely outperformers.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.
Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 76.
Here are five out of the 76 stocks:
AMC Entertainment: The Zacks Rank #2 operates as a theatrical exhibition company primarily in the United States and internationally. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of AMC for the past four quarters is 52.97%.
DocuSign: The Zacks Rank #2 company is a global provider of cloud-based software. The company’s DocuSign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process.
The average earnings surprise of DOCU for the past four quarters is 27.1%.
Vivid Seats: Vivid Seats Inc. provides a marketplace, which utilizes its technology platform to connect buyers with ticket sellers. Vivid Seats Inc., formerly known as Horizon Acquisition Corporation, is based in Chicago.
The average earnings surprise of SEAT for the past four quarters is 114.58%.
Lamb Weston:This Zacks Rank #1 company is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and also provides a range of appetizers.
The average earnings surprise of LW for the past four quarters is 46.16%.
Fiverr International: This Zacks Rank #2 company provides an online marketplace for selling goods and services.
The average earnings surprise of FVRR for the past four quarters is 24.98%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
Lamb Weston (LW) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
Fiverr International (FVRR) : Free Stock Analysis Report
Vivid Seats Inc. (SEAT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-27
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AMC
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The NASDAQ 100 Pre-Market Indicator is down -1.75 to 15,980.26. The total Pre-Market volume is currently 35,123,563 shares traded.
The following are the most active stocks for the pre-market session:
Captivision Inc. (CAPT) is +0.28 at $2.62, with 3,219,781 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro Short QQQ (SQQQ) is -0.01 at $15.89, with 2,179,533 shares traded. This represents a 2.98% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +2 at $237.45, with 1,154,969 shares traded. TSLA's current last sale is 94.98% of the target price of $250.
ProShares UltraPro QQQ (TQQQ) is unchanged at $44.18, with 1,000,689 shares traded. This represents a 174.41% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is +1.64 at $148.38, with 623,416 shares traded. Over the last four weeks they have had 13 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.77. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Direxion Daily TSLA Bull 1.5X Shares (TSLL) is +0.17 at $13.92, with 619,615 shares traded. This represents a 200% increase from its 52 Week Low.
Palantir Technologies Inc. (PLTR) is -0.02 at $19.18, with 480,284 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $0.04. PLTR's current last sale is 119.88% of the target price of $16.
AMTD Digital Inc. (HKD) is +0.12 at $5.04, with 429,587 shares traded.
NIO Inc. (NIO) is -0.04 at $7.36, with 341,096 shares traded. NIO's current last sale is 62.64% of the target price of $11.75.
Perfect Corp. (PERF) is +0.31 at $2.81, with 256,600 shares traded. PERF's current last sale is 74.93% of the target price of $3.75.
AMC Entertainment Holdings, Inc. (AMC) is +0.02 at $6.92, with 240,289 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $-0.81. AMC's current last sale is 76.89% of the target price of $9.
Teva Pharmaceutical Industries Limited (TEVA) is +0.25 at $9.80, with 230,810 shares traded. TEVA's current last sale is 98% of the target price of $10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-22
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AMC
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It's hard to believe that 2023 is almost over. As the end of the year approaches, I would not be surprised if some investors begin to trim some gains and reallocate capital. While financial journals all over the world can't seem to write enough about artificial intelligence (AI), it's important to remember that there are many ways to capitalize on markets.
One of the best ways to build wealth is by investing in dividend stocks. However, given the macroeconomic picture remains a bit cloudy, some investors may be wary of investing in companies that might cut its dividend to preserve capital. As I've written previously, one of the best and safest ways to invest in dividend stocks is to look at business development companies (BDCs) or real estate investment trusts (REIT).
One of the steadiest REITs out there today is Realty Income (NYSE: O). While Realty Income certainly faces a number of macro headwinds, I believe now is an incredible time to buy the dip as the stock hovers around three-year lows. Let's dig into the big picture and assess what is going on in the real estate market, how it's affecting Realty Income, and why now could be a lucrative time to scoop up shares at a bargain price and a yield of almost 6%.
How is the real estate market right now?
The Federal Reserve has been fighting a battle against lingering inflation since early 2022. Although indications suggest that inflation is beginning to cool down, the current rate of 3.2% remains higher than the Fed's long-term goal of 2%. One of the ways that the Fed is combating inflation is by raising interest rates. In theory, by raising the cost of borrowing money, consumer spending will slow.
Realty Income is primarily known as a retail REIT. The company's clients include brick-and-mortar stores such as Dollar General, Walgreens, FedEx, Walmart, and AMC.
Remember, inflation impacts a consumer's ability to purchase goods and services. For this reason, many retail outlets have taken a major hit as people scale back on discretionary spending. This is why Realty Income's is at risk. If its tenants struggle to entice consumers, then it makes generating revenue and profit much more difficult. Subsequently, these properties could struggle to make rent payments to Realty Income.
Since inflation remains above the Fed's long-term target and consumer purchasing power remains depressed, is it time to worry about Realty Income?
Image source: Getty Images.
Should you invest in Realty Income stock?
Something that I often encourage investors to do is zoom out and look at the bigger picture. Realty Income has been around for more than 50 years. During that time, the company has faced a number of challenges ranging from intensifying competition to economic recession. And yet, throughout this time, the company has not only survived but thrived. Here are some things to consider.
First and foremost, some economists are calling for an economic slowdown sometime in 2024. Whether this becomes a full-blown recession is tough to predict. Nonetheless, a contrarian might suggest that Realty Income is in a position to benefit from an economic slowdown. The reason is that during tougher economic periods, consumers tend to turn to cost-conscious retail options. Given that some of Realty Income's tenants include Dollar General, Dollar Tree, Hobby Lobby, Walmart, and BJ's Wholesale, it's possible that consumers will resort to these options over other stores or e-commerce during an economic pullback.
Another under-the-radar opportunity that I do not think is baked into Realty Income's growth prospects is its proposed acquisition of Spirit Realty. While the obvious benefit of an acquisition is increasing revenue and profits by broadening your customer base, this deal comes at an interesting time. Given the unique structure of REITs, one of the most important metrics for investors to consider is funds from operations (FFO). FFO is similar to earnings per share (EPS) but is specifically used for gauging the performance among REITs. The chart below illustrates that over the last decade, Realty Income has done a great job increasing FFO per share.
Data source: YCharts.
Given its ability to increase FFO, Realty Income has been able to reward its long-term investors in the form of a monthly dividend. Furthermore, the chart below showcases Realty Income's consistent dividend increases for nearly three decades. This hits on my prior point that over the last 30 years, Realty Income has been able to navigate around challenging economic periods and still reward its investors.
Data source: YCharts.
But the bigger point is that with the stock near three-year lows, markets may not be pricing in the accretive nature of the Spirit Realty acquisition. Per Realty Income's deal rationale, management believes that the company should be able to generate $50 million in annual synergies from the acquisition and is forecasting a 2.5% accretion per share.
The prospects of the Spirit Realty deal, combined with Realty Income's long and proven track record during times of economic cloudiness, make the stock a compelling buy at current trading levels. For investors looking to supplement their portfolio with passive income, now could be a really interesting time to open a position in Realty Income.
10 stocks we like better than Realty Income
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Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FedEx, Realty Income, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-21
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AMC Entertainment (NYSE:AMC) stock trounced Wall Street’s expectations in the third quarter. Moviegoers hit the theaters in droves as Barbie and Oppenheimer wowed audiences. AMC attendance was up 38% from the year-ago period pushing revenue to $1.4 billion. That was 45% above last year and nearly 12% better than Wall Street’s expectation of $1.3 billion.
Even better for AMC was the $0.08 per share profit it turned in versus the $2.20 per share loss in 2022. It was also far superior to the $0.18 per share loss analysts expected. Yet AMC’s stock is actually down over 20% from where it closed before the theater chain released its results. You should be just as unimpressed with it as the market is.
“Netflix and chill” Still a Threat
Despite the dual success of “Barbenheimer,” there were few other blockbusters on the big screen this year. Year-to-date box office receipts of $7.8 billion are running almost 6% above last year, but that’s still 31% less than pre-pandemic levels.
Consumers have far more choices for entertainment available to them today. Streaming is one such avenue that is cutting into theater attendance. Despite being a day-and-date release on the Peacock streaming service, Five Nights at Freddy’s has become a breakout hit. Yet it is the exception rather than the rule.
Barbie earned $1.4 billion at the global box office, a nice return on a $145 million production budget. Oppenheimer made almost $1 billion on a $100 million budget. The Super Mario Bros movie, released in April, is the only other movie to have earned over $1 billion this year.
AMC also needs to contend with superhero fatigue. Disney‘s (NYSE:DIS) Marvel Cinematic Universe has lost all momentum. The Marvels just opened to the worst first-weekend box office of any film in the MCU history with $46 million.
With average movie ticket prices today at $10.53, or 15% more than when Captain Marvel debuted in 2019, the actual number of people going to see the film is far less than what that figure indicates.
Drowning in AMC Stock
AMC also continues to do shareholders dirty. It plans to do another stock offering that will further dilute existing shareholders. The real reason for AMC’s stocks plummeting after reporting earnings is evident. Shareholders are tired of being the ones left holding the bag.
The theater operator will be doing a $350 million share offering. It’s the second one in just three months. In September it raised $325 million through the sale of 40 million shares. And that was right after AMC converted its AMC Preferred Equity shares, called APE, which were exchanged on a 1-for-7.5 share basis. AMC had completed a reverse 1-for-10 split of the stock in August. The APEs were delisted from the NYSE.
The APE stock had been a previous hoodwink of shareholders that allowed AMC to raise cash without getting shareholder approval. They were never a good deal despite shareholder enthusiasm, but now AMC’s stock is worth even less.
The theater chain keeps raising cash because of its heavy burden of debt. It has some $5.1 billion in long-term obligations and says the proceeds will go to retire some of it.
The stock is down 77% year to date, almost 90% over the past 12 months, and almost 99% below its meme stock peak. There’s no reason any investor should consider AMC Entertainment an investment-worthy stock.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post AMC Stock Loses Even When It Wins appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-21
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AMC
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A downtrend has been apparent in AMC Entertainment (AMC) lately with too much selling pressure. The stock has declined 21.8% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
Here is How to Spot Oversold Stocks
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for AMC
The heavy selling of AMC shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 29.9. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for AMC has increased 7.9%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, AMC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-21
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AMC
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The U.S. consumer discretionary sector has been currently experiencing possibilities of perils. Over the last 30 days, the sector behemoth Consumer Discretionary Select Sector SPDR ETF XLY added 5.5%, while the past year has seen a more positive trend, with the fund gaining about 17%. This overall uptrend is reflected in the year-to-date figure, too, which stands at 29%.
Although higher unemployment, eroding consumer savings and pressure on home prices are likely to weigh on consumer spending growth, a few favorable factors have lately shown light at the end of the tunnel.
Against this backdrop, below we highlight a few reasons that may boost these consumer discretionary stocks ahead. The winning stocks include: AMC Entertainment AMC, Royal Caribbean Cruises RCL, DraftKings DKNG, fuboTV FUBO and The Honest Company HNST.
Falling Inflation
The Consumer Price Index (CPI) showed that prices remained unchanged over the last month and grew 3.2% from the prior year in October, marking a deceleration from September's 0.4% monthly increase and 3.7% annual gain in prices. Core inflation marked its slowest pace in over two years.
Economists' expectations fell short of the actual data, as they had predicted a 0.1% month-over-month increase and a 3.3% year-over-year increase in prices. Core prices were also anticipated to rise by 0.3% from the prior month and 4.1% from the previous year.
A Less-Hawkish Fed
Cooling inflation triggered the possibility of a less hawkish Fed going forward. Following the release of this data, market indicators showed a nearly 95% probability that the Federal Reserve would keep interest rates unchanged in December, as reflected in data from the CME Group.
U.S. benchmark treasury yield slumped to 4.45% on Nov 16, 2023, from 4.63% recorded on Nov 13, while the two-year Treasury notes yielded 4.83% on Nov 16, 2023, down from 5.02% recorded on Nov 13.
Holiday Season Sales
The National Retail Federation (NRF) stated that consumers are estimated to shell out between $957.3 billion to $966.6 billion during November and December. Thus, spending will increase between 3% and 4% over the same period last year. The growth may be slightly lower compared to recent years, but it’s still in line with the growth rate from 2010 to 2019, when the average annual holiday outlays jumped 3.6%.
Decent Earnings
The consumer discretionary sector is expected to record 26.3% earnings growth in the third quarter, while earnings growth for the final quarter of 2023 is likely to be 18.1%. For the first and second quarters of 2024, the earnings growth is expected to be 14.1% and 14.7%, respectively, per the Earnings Trends issued on Nov 15, 2023. The revenue growth for Q3 is expected to be 8.3%. For Q4 of 2023, Q1 of 2024 and Q2 of 2024, revenue growth will likely be 3.7%, 3.5% and 3.6%, respectively.
Top Picks
Against this backdrop, below we highlight a few consumer discretionary stocks that have an upbeat (Value-Growth-Momentum) scoreof “B” and a Zacks Rank #2 (Buy) and Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for their earnings in the upcoming fiscal year has grown by at least 5% in the past month.You can see the complete list of today’s Zacks #1 Rank stocks here.
AMC Entertainment
AMC Entertainment Holdings, Inc., operates as a theatrical exhibition company primarily in the United States and internationally.
Zacks Rank: #2
Percentage change F1 Zacks Consensus Earnings Estimate (4 weeks): 29.83%
Royal Caribbean Cruises
Royal Caribbean Cruises is a cruise company. It owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises.
Zacks Rank: #1
Percentage change F1 Zacks Consensus Earnings Estimate (4 weeks): 7.76%
DraftKings
DraftKings Inc. is a digital sports entertainment and gaming company created to fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming and digital media.
Zacks Rank: #2
Percentage change F1 Zacks Consensus Earnings Estimate (4 weeks): 34.81%
fuboTV
FuboTV offers sports first live TV streaming platform as well as news and entertainment content.
Zacks Rank: #2
Percentage change F1 Zacks Consensus Earnings Estimate (4 weeks): 8.33%
The Honest Company
The Honest Company is a digitally-native, mission-driven brand focused on leading the clean lifestyle movement, creating a community for conscious consumers and seeking to disrupt multiple consumer product categories.
Zacks Rank: #2
Percentage change F1 Zacks Consensus Earnings Estimate (4 weeks): 27.27%
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
DraftKings Inc. (DKNG) : Free Stock Analysis Report
fuboTV Inc. (FUBO) : Free Stock Analysis Report
The Honest Company, Inc. (HNST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-15
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While AMC Entertainment (NYSE:AMC) stock was once the epitome of a strong entertainment stock thanks to “meme mania,” lately it has lost its appeal for investors. Looking ahead to 2024, you may be looking at alternative options for entertainment stocks.
Like most stocks, it’s important to consider those representing companies with sound fundamentals and robust growth outlooks. In particular, content-focused entertainment stocks present an attractive risk/reward profile. They’ve suffered low valuations due to concerns about “cord cutting” and the decline of linear television. As a result, even a modest improvement in operating results could drive them to higher prices. Let’s take a look together at three options that make my list of best entertainment stocks.
Disney (DIS)
Source: nikkimeel / Shutterstock.com
Disney’s (NYSE:DIS) stock, now at $80, faced a 24% drop in the last 12 months and a 30% decline in five years. The legendary company may hold iconic properties including Star Wars and Marvel, but their share price has stagnated for nearly a decade. Notably, DIS stock plummeted 60% from its 2021 peak. CEO Bob Iger’s efforts to revive Disney through cost-cutting and layoffs haven’t fully addressed challenges like selling legacy TV stations, determining Hulu’s ownership with Comcast, and dealing with a global Hollywood strike.
All its challenges considered, Disney displayed positive signals. The company reported robust profit growth in Q4 with net income surging 63% to $264 million and revenue rising 5% to $21.24 billion. Additionally, Disney+ leverages Disney’s rich intellectual property, providing subscribers with a diverse content library including fan favorites from timeless animated classics to Pixar films, Marvel sagas, and Star Wars narratives.
Disney’s adeptness in transitioning from traditional TV to streaming is evident in the success of Disney+. The company’s strategic emphasis on direct-to-consumer (DTC) services aims for profitability in this segment by the end of fiscal 2024 and positions Disney for sustained growth in the digital entertainment realm.
Take-Two Interactive (TTWO)
Source: Sergei Elagin / Shutterstock.com
Despite a significant run this year, Take-Two Interactive (NASDAQ:TTWO) stock only rose 8% since 2018 and remains 30% below its 2022 peak. Known for major franchises like Grand Theft Auto and Red Dead Redemption, Take-Two Interactive faced challenges from the broader tech downturn in 2022 and costly acquisitions. This included the $12.7 billion Zynga takeover, which led to a $1.2 billion net loss in 2022. Despite these setbacks, analysts predict a 10% potential increase in TTWO stock, indicating potential improvement in its financial outlook.
Rockstar Games president, Sam Houser, announced on X that the first trailer for the next Grand Theft Auto (GTA VI) would release in early December, coinciding with the studio’s 25th anniversary. Take-Two suggested a potential 2024 launch, aiming for significant success in fiscal 2025.
Anticipated before launch, analysts predicted over $1 billion with 25 million copies sold initially. CEO Strauss Zelnick aims for $8 billion in net bookings and $1 billion in operating cash flow by fiscal 2025. Recently, JP Morgan increased its target to $165, citing robust and stronger fiscal 2025 guidance.
Netflix (NFLX)
Source: izzuanroslan / Shutterstock.com
Netflix (NASDAQ:NFLX) shone in its recent earnings report, surpassing 15 million subscribers for its ad-supported tier. With over 9 million new subscribers, the streaming giant embraces ad-supported revenue, anticipating premium subscribers to transition, providing stable revenue for content development costs.
Utilizing artificial intelligence (AI) and machine learning, Netflix analyzes extensive viewer data, providing personalized recommendations based on the preferences of over 247 million subscribers. This dynamic approach ensures real-time, diverse top 10 lists and optimizes thumbnail selections, enhancing user engagement. In a new move, Netflix plans to reward “binge watchers” on the ad-supported plan by reducing the number of ads shown. Users watching three consecutive episodes with ads will be granted one ad-free episode.
Notably, NFLX stock experienced a pullback since mid-summer but still rose 39% for the year. Despite the correction, the recent bounce after the company’s earnings suggests a potential opportunity, making it an appealing choice for investors seeking holiday cheer.
On the date of publication, Chris MacDonald has a LONG position in DIS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post Prime Time Picks: 3 Entertainment Stocks to Bet On Instead of AMC appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-15
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AMC
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Irrespective of the market conditions, investors strive to design a portfolio of stocks that will fetch them handsome returns. No one wants to see their hard-earned money go down the drain as a result of wrong investment decisions. However, the task is easier said than done because selecting the right stocks out of a huge number of stocks in the market at any point in time is by no means an easy task. The current uncertain scenario makes the job even tougher.
In the absence of proper guidance, identifying a winning stock is akin to searching for “a needle in a haystack” for an investor. The proper guidance, in this respect, comes from brokers, who are deemed to be experts equipped with vast knowledge and know-how as far as the field of investing is concerned.
Therefore, we believe that broker-loved stocks like The Greenbrier Companies GBX, AMC Entertainment (AMC), The Gap GPS, Avnet AVT and Group 1 Automotive GPI should be on an investor’s radar for healthy returns.
Brokers go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Since brokers follow the stocks in their coverage in great detail, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Estimate revisions serve as an important pointer regarding the price of a stock.
To take care of the earnings performance, we have designed a screen based on improving analyst recommendations and upward estimate revisions over the last four weeks.
Top-Line Performance is Important Too
According to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance, especially in an environment of revenue weakness due to macroeconomic headwinds. Therefore, one must take the top-line performance into consideration as well while formulating a winning strategy. We have included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are in the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
The Greenbrier Companies is a leading supplier of transportation equipment and services to the railroad and related industries. GBX’s manufacturing segment produces double-stack intermodal railcars, conventional railcars and marine vessels and performs repair and refurbishment activities for both intermodal and conventional railcars.
GBX is also engaged in complementary leasing and services activities. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland & Romania and serves customers across Europe and the Middle East. We are impressed by the company’s efforts to pay dividends even in the current uncertain scenario. GBX currently carries a Zacks Rank #3 (Hold).
AMC Entertainment operates as a theatrical exhibition company. It owns interests in theaters and screens. The Zacks Consensus Estimate for the current year has increased 17.6% over the past 60 days. AMC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Gap Inc. is being well-served by lower advertising expenses and technology investments resulting from cost-saving actions. The retailer is on track with the execution of its Power Plan 2023.
GPS shares have surged 74.6% over the past six months. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 60 days. GPS currently carries a Zacks Rank #3.
Avnet is benefiting from robust demand for its products across Asia, Europe, the Middle East and Africa regions. Improvement in the Americas also served as a tailwind. Its continued focus on boosting IoT capabilities is helping it expand in newer markets and win customers. Moreover, cost-saving efforts are aiding profitability.
Avnet, currently carrying a Zacks Rank of 3, has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in each of the last four quarters, the average being 13.8%.
Group 1 Automotive, a Zacks Rank #3 company, is one of the leading automotive retailers in the world, with operations primarily located in the United States and the UK.
GPI has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in each of the last four quarters, the average being 7.3%. GPI shares have gained 7.3% over the past six months.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Avnet, Inc. (AVT) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-14
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The release of “Dumb Money” has sparked renewed attention in meme stocks to buy and hold, shedding light on the 2021 retail trading frenzy. The interest in meme stocks led to the widespread popularity of stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) which seemingly offered nothing for the savvy investor, marking an important chapter in financial history.
However, investors are quick to dismiss meme stocks as mere social media fads lacking solid fundamentals and attractive growth trajectories. The trending meme stocks discussed in this article are three of the biggest winners in the stock market this year, offering robust long-term upside. Therefore, it is imperative to understand the fusion of finance and online trends show meme stocks as enduring, not temporary. They represent a fresh aspect of investing, where classic strategies merge with modern trends, offering long-lasting opportunities for investors.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Tech titan Apple (NASDAQ:AAPL) never ceases to amaze. The launch of the iPhone 15 sent ripples across the industry, particularly in challenging markets such as China. Additionally, the iPhone 15 Pro Max boasts an extraordinary 50-day average fulfillment period, as reported by JPMorgan (NYSE:JPM) in September, underscoring its skyrocketing demand.
Moreover, the company introduced the Vision Pro augmented reality headset, a groundbreaking venture that marks Apple’s most significant consumer product unveiling in over a decade. Furthermore, Apple’s financial strength remains unchallenged, with a market capitalization that has ballooned over the $2.9 trillion mark. The latest quarterly figures are a testament to this, with remarkable sales of $89.5 billion and net income soaring to $22.96 billion. TipRanks analysts are echoing this success, predicting a Strong Buy with an 9% upside. This financial prowess, coupled with innovative launches, cements Apple’s dominance in the market.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Meta Platforms (NASDAQ:META), boasting over three billion users across its services, remains a digital powerhouse. The company is making waves this year with an emphatic comeback as it makes its foray into AI. The debut of its large Llama language model earlier this year was a strategic move to rival titans such as OpenAI’s ChatGPT. Consequently, the unveiling of Llama 2 further highlights Meta’s commitment to innovation and attracting top developer talent.
At Meta Connect 2023, Meta showcased the Quest 3 VR headset, a tech marvel with a Snapdragon XR2 Gen 2 chipset, and an innovative “pass-through” feature for improved realism. Additionally, the company revealed the Ray-Ban Meta Smart Glasses, with unique frames, enhanced audio and camera features, poised to further expand Meta’s prowess in everyday wearables.
Reflecting this optimism, Meta’s stock performance has been stellar, soaring over 164% year-to-date. Additionally, the average analyst target for the stock at an impressive $381. That points to Meta’s potential for long-term growth in the ever-evolving tech landscape.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA), a GPU powerhouse, is rapidly advancing in the AI sector, fueled by high demand for its AI training and inference chips. This growing interest is mirrored in its vigorous growth and strategic integration of HGX systems across major cloud platforms, highlighting Nvidia’s technological prowess.
Moreover, Nvidia’s stock showcases extraordinary growth, climbing 240% year-to-date and trading at $483. As a standout in the S&P 500 index this year, NVDA’s market capitalization surpassed the whopping $1 trillion mark. That remarkable surge reflects the company’s robust position in the AI sphere and its ability to consistently innovate.
Furthermore, Citi (NASDAQ:C) analysts forecasted that NVDA will maintain an impressive 90% market share in the AI GPU chip segment over the next few years. That projection, coupled with a Strong Buy rating from TipRanks analysts and a predicted 34% upside, positions Nvidia as a company with a clear trajectory towards even greater heights.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 3 Meme Stocks That Are Here for the Long Haul appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-09
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AMC
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By Amruta Khandekar and Shristi Achar A
Nov 9 (Reuters) - U.S. stock index futures struggled for direction on Thursday as uncertainty about when the Federal Reserve will start easing financial conditions kept investors on edge as they awaited further policy cues from central bank officials.
Signs of a weakening labor market and a tempering of the Fed's hawkish stance at its last meeting have pulled U.S. Treasury yields down from multi-year highs, helping equities stage a stellar comeback from their October lows.
However, the rally has run out of steam as several Fed policymakers this week pushed back against market expectations that the central bank will begin cutting interest rates soon.
The benchmark S&P 500 .SPX eked out marginal gains on Wednesday, but managed to extend its longest winning streak in two years.
A majority of traders are betting that the Fed will keep interest rates unchanged this year, with odds of a cut of at least 25 basis points in May standing at nearly 47%, according to the CME Group's FedWatch tool.
"But that was never the case and comments from various CB (central bank) officials this week have very much opened eyes to this."
Chicago Fed President Austan Goolsbee said the U.S. central bank will need to pay close attention to the effects of higher longer-term bond yields to make sure they don't slow the economy more than expected over the coming year, according to a Wall Street Journal report.
Among the Fed speakers on tap, Chair Jerome Powell is scheduled to speak at an International Monetary Fund (IMF) conference at 2 p.m. ET (1900 GMT). He had refused to comment on monetary policy at another conference on Wednesday.
Richmond Fed President Thomas Barkin is also expected to discuss the outlook for the U.S. economy later in the day.
Investors will also assess a Labor Department report, due at 8:30 a.m. ET, which is expected to show jobless claims edged up to 218,000 for the week ended Nov. 4 from 217,000 in the prior week.
On the earnings front, shares of Walt DisneyDIS.N rose 4.1% in premarket trade after the entertainment company exceeded Wall Street estimates for quarterly profit on higher attendance at its Shanghai and Hong Kong theme parks.
Arm HoldingsARM.O dropped 5.1% as the semiconductor firm gave a fiscal third-quarter sales forecast that fell short of analyst estimates.
Theatre chain AMC EntertainmentAMC.Nrose 2.7% on beating third-quarter revenue estimates.
MGM Resorts InternationalMGM.N added 3.5% on beating third-quarter estimates for profit and revenue as the casino operator benefited from easing pandemic restrictions.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-09
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AMC
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures: Dow up 0.11%, S&P up 0.06%, Nasdaq down 0.04%
Nov 9 (Reuters) - U.S. stock index futures were muted on Thursday as uncertainty about when the Federal Reserve will start easing financial conditions kept investors on edge as they awaited further policy cues from central bank officials.
Signs of a weakening labor market and a tempering of the Fed's hawkish stance at its last meeting have pulled U.S. Treasury yields down from multi-year highs, helping equities stage a stellar comeback from their October lows.
However, the rally has run out of steam as several Fed policymakers this week pushed back against market expectations that the central bank will begin cutting interest rates soon.
The benchmark S&P 500 .SPX eked out marginal gains on Wednesday, but managed to extend its longest winning streak in two years.
At 5:15 a.m. ET, Dow e-minis 1YMcv1 were up 39 points, or 0.11%, S&P 500 e-minis EScv1 were up 2.5 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were down 6.25 points, or 0.04%.
A majority of traders are betting that the Fed will keep interest rates unchanged this year, with odds of a cut of atleast 25 basis points in May standing at nearly 48%, according to the CME Group's FedWatch tool.
"The market got carried away regarding how soon it thought we would be seeing interest rate cuts being delivered. It took the message that further rate hikes were unlikely as ... cuts were coming soon," said Stuart Cole, head macro economist at Equiti Capital.
"But that was never the case and comments from various CB (central bank) officials this week have very much opened eyes to this."
The yield on the benchmark ten-year Treasury note US10YT=RR was largely steady at 4.5333% while that on the two-year note US2YT=RR, which best reflects short-term rate expectations, inched up to 4.9445%.
Fed Chair Jerome Powell is scheduled to speak at an International Monetary Fund (IMF) conference at 2 p.m. ET (1900 GMT). He had refused to comment on monetary policy at another conference on Wednesday.
Federal Reserve Bank of Richmond President Thomas Barkin is also expected to discuss the outlook for the U.S. economy later in the day.
Investors will also assess a Labor Department report, due at 8:30 a.m. ET, which is expected to show jobless claims edged up to 218,000 for the week ended Nov. 4 from 217,000 in the prior week.
On the earnings front, shares of Walt DisneyDIS.N rose 4.0% in premarket trade after the entertainment company exceeded Wall Street estimates for quarterly profit on higher attendance at its Shanghai and Hong Kong theme parks.
At 5:15 a.m. ET, Dow e-minis 1YMcv1 were up 39 points, or 0.11%, S&P 500 e-minis EScv1 were up 2.5 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were down 6.25 points, or 0.04%.
Arm HoldingsARM.O dropped 6.1% as the semiconductor firm gave a fiscal third-quarter sales forecast that fell short of analyst estimates.
Theatre chain AMC EntertainmentAMC.N rose 2.3% on beating third-quarter revenue estimates.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-08
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AMC
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For the quarter ended September 2023, AMC Entertainment (AMC) reported revenue of $1.41 billion, up 45.2% over the same period last year. EPS came in at -$0.09, compared to -$2.00 in the year-ago quarter.
The reported revenue represents a surprise of +8.58% over the Zacks Consensus Estimate of $1.29 billion. With the consensus EPS estimate being -$0.20, the EPS surprise was +55.00%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how AMC Entertainment performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Food and beverage: $482.70 million versus $449.25 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +44.8% change.
Revenues- Other theatre: $125.50 million versus the four-analyst average estimate of $106.45 million. The reported number represents a year-over-year change of +39.8%.
Revenues- Admissions: $797.70 million compared to the $739.10 million average estimate based on four analysts. The reported number represents a change of +46.3% year over year.
View all Key Company Metrics for AMC Entertainment here>>>
Shares of AMC Entertainment have returned +3% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-08
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AMC
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Adds details from paragraph 2-4
Nov 8 (Reuters) - AMC Entertainment Holdings AMC.N beat third-quarter revenue estimates on Wednesday, riding on the success of "Barbie" and "Oppenheimer" movies as volumes of theatrical releases also improved at the box office.
Popular and diverse movie titles are driving moviegoers to theaters in a post-pandemic environment ruled by pent-up demand and high prices of tickets helping theater chain operators.
Attendance in AMC theaters increased 38.4% to 73,576.
The movie theater chain posted revenue of $1.41 billion for the quarter ended Sept. 30, compared with market estimates of $1.26 billion, according to LSEG data.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)
((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-08
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AMC Entertainment (NYSE:AMC), the movie theater chain, reported an unexpected surge in third-quarter earnings on Nov. 8. The company announced that revenues hit $1.41 billion, exceeding Wall Street estimates of $1.26 billion by 11.6%. The 45.2% year-over-year growth was driven by an increase in contribution per patron, and a 38.4% increase in theater attendance.
AMC also surprised on earnings per share (EPS). The theater chain reported EPS of 8 cents, a significant improvement over last year’s loss of $2.20 per share, and well ahead of analyst expectations for a loss of 18 cents. .
“For the second consecutive quarter, AMC reported positive net income and we ended the quarter with $730 million of cash,” CEO Adam Aron said in the press release. “This all suggests that we are well underway on our growth path to recovery from the ravages of the COVID pandemic.”
Aron attributes the company’s success to its innovative marketing and pricing strategies that led to an increase in per-patron spending, particularly in its high-margin food and beverage business. Aron also pointed out the strategic closing of low-performing theaters while launching successful new ones as reasons for the outperformance.
Despite the promising quarter, the CEO also addressed forthcoming challenges, particularly striking actors and writers that threaten to impact AMC’s 2024 performance. Urging involved parties to negotiate immediately, Aron emphasized the importance of ending the “months-long disharmony” within the creative community.
The company also warned that attendance at the domestic box office was still 16% below comparable 2019 levels.
AMC’s Q3 release comes amidst a challenging year for the company. Shares of the firm have declined 67%, contrasting against the S&P 500 YTD return of 15.6%.
Nevertheless, AMC’s Q3 financial performance suggests a turnaround could be in the works. Pay close attention.
Thomas Yeung produced this article using data from Thomson Reuters and unique generative AI prompts. These prompts help distill real-time quarterly earnings data and combine it with InvestorPlace.com’s best-in-class analysis. Our readers get a deep dive into financial results at lightning speed. These articles have been reviewed by a human editor prior to publication. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
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The post AMC Reports Stunning Q3 Numbers. Here’s Why Wall Street Is Unimpressed With AMC Stock. appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-08
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AMC
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The NASDAQ 100 After Hours Indicator is down -5.95 to 15,307.29. The total After hours volume is currently 91,732,632 shares traded.
The following are the most active stocks for the after hours session:
Transocean Ltd. (RIG) is +0.0103 at $6.68, with 7,608,073 shares traded. RIG's current last sale is 89.07% of the target price of $7.5.
EQRx, Inc. (EQRX) is +0.06 at $2.40, with 4,525,189 shares traded.EQRX is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023.
Walt Disney Company (The) (DIS) is +2.7 at $87.20, with 3,677,595 shares traded. Smarter Analyst Reports: Disney+ to Launch Ad-Supported Subscription Offering
Sabre Corporation (SABR) is unchanged at $3.44, with 3,122,245 shares traded. As reported in the last short interest update the days to cover for SABR is 7.306776; this calculation is based on the average trading volume of the stock.
Microsoft Corporation (MSFT) is +0.17 at $363.37, with 2,889,845 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.74. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Pfizer, Inc. (PFE) is -0.0415 at $30.78, with 2,714,881 shares traded. PFE's current last sale is 81% of the target price of $38.
Micron Technology, Inc. (MU) is unchanged at $72.28, with 2,341,002 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
Welltower Inc. (WELL) is unchanged at $86.37, with 2,209,821 shares traded. WELL's current last sale is 95.97% of the target price of $90.
DoorDash, Inc. (DASH) is unchanged at $87.31, with 2,162,394 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $-0.21. DASH's current last sale is 91.42% of the target price of $95.5.
Tricon Residential Inc. (TCN) is -0.005 at $7.27, with 2,085,831 shares traded. As reported by Zacks, the current mean recommendation for TCN is in the "buy range".
AMC Entertainment Holdings, Inc. (AMC) is +0.01 at $10.10, with 2,033,823 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $-0.2. Smarter Analyst Reports: AMC Entertainment Books Smaller-than-Feared Q4 Loss
Intel Corporation (INTC) is -0.05 at $37.87, with 2,028,810 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.27. INTC's current last sale is 99.66% of the target price of $38.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-08
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AMC
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Below is Validea's guru fundamental report for AMC ENTERTAINMENT HOLDINGS INC (AMC). Of the 22 guru strategies we follow, AMC rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
AMC ENTERTAINMENT HOLDINGS INC (AMC) is a mid-cap growth stock in the Motion Pictures industry. The rating using this strategy is 40% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of AMC ENTERTAINMENT HOLDINGS INC
AMC Guru Analysis
AMC Fundamental Analysis
More Information on Kenneth Fisher
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-06
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AMC
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In its upcoming report, AMC Entertainment (AMC) is predicted by Wall Street analysts to post quarterly loss of $0.22 per share, reflecting an increase of 89% compared to the same period last year. Revenues are forecasted to be $1.25 billion, representing a year-over-year increase of 28.7%.
Over the last 30 days, there has been an upward revision of 24.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some AMC Entertainment metrics that Wall Street analysts commonly model and monitor.
Analysts forecast 'Revenues- Food and beverage' to reach $431.48 million. The estimate points to a change of +29.5% from the year-ago quarter.
The consensus among analysts is that 'Revenues- Other theatre' will reach $103.05 million. The estimate indicates a year-over-year change of +14.8%.
It is projected by analysts that the 'Revenues- Admissions' will reach $711.63 million. The estimate indicates a year-over-year change of +30.5%.
View all Key Company Metrics for AMC Entertainment here>>>
AMC Entertainment shares have witnessed a change of +15.8% in the past month, in contrast to the Zacks S&P 500 composite's +3.1% move. With a Zacks Rank #2 (Buy), AMC is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-03
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AMC
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PENN Entertainment, Inc. PENN reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The quarterly earnings increased but revenues declined on a year-over-year basis.
Following the results, the company’s shares gained 14% during trading hours on Nov 2.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted earnings per share (EPS) of $1.21, handily beating the Zacks Consensus Estimate of 33 cents by 266.7%. In the prior-year quarter, it reported adjusted EPS of 72 cents.
Total revenues of $1,619.4 million beat the Zacks Consensus Estimate of $1,606 million. The top line declined 0.3% on a year-over-year basis. Softness in the South and West regions led to the decline.
The Northeast segment delivered revenues of $687 million, up from $685.4 million a year ago. Our model predicted the metric to rise 5.8% year over year to $725.2 million. Revenues from the South, West and Midwest segments came in at $308.2 million, $135.1 million and $293.4 million, down 6.5%, 13.7% and 1.7% year over year, respectively.
The Interactive and Other segments’ revenues totaled $196.3 million and $4.5 million, up 23.7% and 7.1% year over year, respectively.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote
Operating Headlines
In the quarter under discussion, adjusted EBITDAR declined 5.7% from the year-ago quarter’s level to $445.1 million. Our model suggested the metric to fall 4.5% year over year. Adjusted EBITDAR margin contracted 150 basis points to 27.5%.
Other Financial Information
As of Sep 30, 2023, the company had cash and cash equivalents of $1,317.9 million compared with $1,624 million as of Dec 31, 2022. Traditional net debt as of Sep 30, 2023, was $1,344.1 million, up from $1,075.8 million at 2022-end. The company’s total liquidity as of Sep 30, 2023, was $1.3 billion.
Zacks Rank & Key Picks
PENN Entertainment currently has a Zacks Rank #3 (Hold).
Live Nation Entertainment, Inc. LYV sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 34.6%, on average. Shares of LYV have declined 3.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates 21.6% and 59.4% growth, respectively, from a year ago.
AMC Entertainment Holdings, Inc. AMC flaunts a Zacks Rank #1. AMC has a trailing four-quarter earnings surprise of 44.2% on average. The stock has lost 32.9% in the past year.
The Zacks Consensus Estimate for AMC’s 2024 sales and EPS implies improvements of 19.5% and 72.8%, respectively, from the prior-year levels.
OneSpaWorld Holdings Limited OSW sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased 10.1% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS suggests advancements of 44.5% and 117.9%, respectively, from the year-earlier levels.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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PENN Entertainment, Inc. (PENN) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-03
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AMC
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Cinemark Holdings (CNK) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 29.79%. A quarter ago, it was expected that this movie theater owner would post earnings of $0.54 per share when it actually produced earnings of $0.80, delivering a surprise of 48.15%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Cinemark, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $874.8 million for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 2.13%. This compares to year-ago revenues of $650.4 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cinemark shares have added about 94.6% since the beginning of the year versus the S&P 500's gain of 12.5%.
What's Next for Cinemark?
While Cinemark has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cinemark: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is breakeven on $674.38 million in revenues for the coming quarter and $1.30 on $3.08 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, AMC Entertainment (AMC), is yet to report results for the quarter ended September 2023. The results are expected to be released on November 8.
This movie theater operator is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of +89%. The consensus EPS estimate for the quarter has been revised 24.3% higher over the last 30 days to the current level.
AMC Entertainment's revenues are expected to be $1.25 billion, up 28.7% from the year-ago quarter.
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Cinemark Holdings Inc (CNK) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-02
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AMC
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JAKKS Pacific, Inc. JAKK reported third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. While revenues outpaced the consensus estimate for the eighth straight quarter, earnings beat the same for the third consecutive quarter.
Following the announcement, shares of the company increased 22% during the after-hours trading session on Nov 1. The company’s product margins have seen a notable boost this year, thanks to a more stable supply chain and reduced promotional activities compared with the previous year.
Q3 Earnings and Revenues
During the quarter, the company reported adjusted earnings per share (EPS) of $4.75, beating the Zacks Consensus Estimate of $3.46. In the prior-year quarter, JAKK reported adjusted EPS of $3.80.
Quarterly revenues of $309.7 million surpassed the consensus mark of $284 million. However, the top line declined 4% on a year-over-year basis. During the quarter, it reported solid contributions from Costumes. Yet, dismal Toys/Consumer Products sales hurt its top line.
Net sales in the Toys/Consumer Products segment decreased 9% year over year to $246 million. Our estimate was $236.6 million.
Costumes net sales rose 19% year over year to $63.7 million. Our projection was $46.4 million.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
JAKKS Pacific, Inc. price-consensus-eps-surprise-chart | JAKKS Pacific, Inc. Quote
Operating Highlights
In the reported quarter, gross margin reached 34.5%, up 600 basis points from the prior-year levels. We predicted the metric to be 26.9%.
Adjusted EBITDA amounted to $67.1 million compared with $59.4 million a year ago.
Balance Sheet
As of Sep 30, the company’s cash and cash equivalents (including restricted cash) were $96.4 million compared with $76.6 million as of Sep 30, 2022.
As of Sep 30, 2023, total debt was zero, in contrast to $67.7 million as of Sep 30, 2022, and $67.2 million as of Dec 31, 2022.
Zacks Rank
JAKKS Pacific carries a Zacks Rank #2 (Buy).
Other Key Picks
Live Nation Entertainment, Inc. LYV sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 34.6%, on average. Shares of LYV have declined 3.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates 21.6% and 59.4% growth, respectively, from a year ago.
AMC Entertainment Holdings, Inc. AMC flaunts a Zacks Rank #1. AMC has a trailing four-quarter earnings surprise of 44.2% on average. The stock has fallen 32.9% in the past year.
The Zacks Consensus Estimate for AMC’s 2024 sales and EPS implies improvements of 19.5% and 72.8%, respectively, from the prior-year levels.
OneSpaWorld Holdings Limited OSW sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased by 10.1% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS suggests advancements of 44.5% and 117.9%, respectively, from the year-earlier levels.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-02
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AMC
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Marriott International, Inc. MAR reported impressive third-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. This was primarily driven by robust leisure demand and solid global booking trends. Also, substantial revenue per available room (RevPAR) growth in international markets added to the upside.
Earnings & Revenue Discussion
In the quarter under review, Marriott’s adjusted earnings per share (EPS) were $2.11, beating the Zacks Consensus Estimate of $2.10. It reported adjusted earnings of $1.69 per share in the prior-year quarter.
Quarterly revenues of $5,928 million outpaced the consensus mark of $5,896 million. The top line improved 12% on a year-over-year basis.
Revenues from Base management and Franchise fees came in at $306 million and $748 million, up 11% and 10% year over year, respectively. RevPAR increases and unit growth primarily backed this uptick. We estimate the metrics to be $315.6 million and $743.3 million, respectively.
Incentive management fees during the quarter reached $143 million, reflecting a rise of 35% from $106 million in the prior-year quarter.
Marriott International, Inc. Price, Consensus and EPS Surprise
Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. Quote
RevPAR & Margins
RevPAR for worldwide comparable system-wide properties jumped 8.8% (in constant dollars) year over year. This was primarily backed by a 4.1% increase in ADR. Occupancy improved by 3.2% from 2022 levels.
Comparable system-wide RevPAR in the Asia Pacific (excluding China) climbed 36.4% (in constant dollars) year over year. Occupancy increased 8.6% year over year, while ADR rose 19.7% from 2022 levels. Comparable system-wide RevPAR in Greater China grew 47.4% year over year.
On a constant-dollar basis, international comparable system-wide RevPAR increased 21.8% year over year. Occupancy and ADR gained 7.6% and 8.5% year over year, respectively. Comparable system-wide RevPAR in Europe gained 9.8%. RevPAR in the Caribbean & Latin America inched up 2.8% from 2022 levels.
Total expenses during the quarter increased 11% year over year to $4,829 million, primarily owing to a rise in reimbursed expenses. Our estimate was pegged at $4,610 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $1,142 million, up 12% from the prior-year quarter. We predicted the metric to be $1,123.6 million.
Balance sheet
At the third-quarter end, Marriott's total debt reached $11.8 billion compared with $11.3 billion in the previous quarter. Cash and cash equivalents, as of Sep 30, 2023, came in at $0.7 billion compared with $0.6 billion in the previous quarter.
Year to date (through Oct 31, 2023), the company repurchased 18.3 million shares of its common stock worth $3.3 billion.
Unit Developments
At the end of third-quarter 2023, Marriott's development pipeline totaled 3,200 hotels, with approximately 557,000 rooms. More than 238,000 rooms were under construction. During the quarter, it added 97 properties (17,192 rooms) to its worldwide lodging portfolio.
Outlook
For fourth-quarter 2023, management anticipates gross fee revenues in the range of $1,185-$1,215 million. Adjusted EBITDA is expected to be between $1,115 million and $1,150 million. MAR estimates fourth-quarter EPS to be between $2.04 and $2.13.
For the fourth quarter, the company projects worldwide system-wide RevPAR to increase 6-7.5% year over year. RevPAR in the United States and Canada is expected to rise 3-4% year over year. International RevPAR is suggested in the range of 14-16% year over year. It anticipates worldwide system-wide RevPAR in 2023 to increase 14-15% year over year compared with the previous expectation of 12-14% year-over-year growth.
For 2023, MAR forecasts gross fee revenues in the range of $4,765-$4,795 million compared with the previous projection of $4,730-$4,820 million. General and administrative expenses are projected to be approximately $935 million.
Adjusted EBITDA is expected to be between $4,574 and $4,609 million compared with the previous expectation of $4,535 million and $4,650 million. It envisions 2023 EPS in the range of $8.50-$8.59, up from the prior estimate of $7.97-$8.42.
Zacks Rank
Marriott currently carries a Zacks Rank #3 (Hold).
Key Picks
Live Nation Entertainment, Inc. LYV sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 34.6%, on average. Shares of LYV have declined 3.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates 21.6% and 59.4% growth, respectively, from a year ago.
AMC Entertainment Holdings, Inc. AMC flaunts a Zacks Rank #1. AMC has a trailing four-quarter earnings surprise of 44.2% on average. The stock has fallen 32.9% in the past year.
The Zacks Consensus Estimate for AMC’s 2024 sales and EPS implies improvements of 19.5% and 72.8%, respectively, from the prior-year levels.
OneSpaWorld Holdings Limited OSW sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased by 10.1% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS suggests advancements of 44.5% and 117.9%, respectively, from the year-earlier levels.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-01
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AMC
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Wall Street expects a year-over-year increase in earnings on higher revenues when AMC Entertainment (AMC) reports results for the quarter ended September 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 8. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This movie theater operator is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of +89%.
Revenues are expected to be $1.25 billion, up 28.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 24.3% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for AMC Entertainment?
For AMC Entertainment, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -17.83%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination makes it difficult to conclusively predict that AMC Entertainment will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that AMC Entertainment would post a loss of $0.50 per share when it actually produced break-even earnings, delivering a surprise of +100%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AMC Entertainment doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Another stock from the Zacks Leisure and Recreation Services industry, Xponential Fitness (XPOF), is soon expected to post earnings of $0.15 per share for the quarter ended September 2023. This estimate indicates a year-over-year change of +50%. Revenues for the quarter are expected to be $74.88 million, up 17.4% from the year-ago quarter.
The consensus EPS estimate for Xponential Fitness has been revised 7.7% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -4.85%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Xponential Fitness will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
Xponential Fitness, Inc. (XPOF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-10-31
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AMC
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For Immediate Release
Chicago, IL – October 31, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Spotify Technology SPOT, PlayAGS AGS, Potbelly PBPB, Matson MATX and AMC Entertainment AMC.
Wall Street Trick or Treat? 5 Stock Picks for Halloween
In the first half of 2023, Wall Street delivered an upbeat performance, with the S&P 500, the Nasdaq and the Dow Jones gaining about 14%, 29.5% and 2.4%, respectively. Better-than-expected corporate earnings and the AI boom were the key trends in the first half.
However, the wining trend faltered in the second half. In July, the S&P 500 and the Nasdaq marked their fifth successive positive month, only to register flat performances in August. Wall Street's vigor waned due to a sequence of bank downgrades and expectations of higher-for-longer interest rates.
September was also not sturdy. As a result, the third quarter was an average-to-downbeat period for investors, mainly due to rising rates. But the feeble trend continued even in the fourth quarter of 2023, with stocks registering a considerable decline in October.
Hence, it is obvious that investors are scratching their heads to find out what lies ahead in the final two months of the year, which forms the all-important holiday season. Over the past decade, the fourth quarter of the year has actually been the best for the stock market, with the Dow, the S&P 500 and the Nasdaq up at least 4% on average, per a CNBC article.
Although the S&P 500 has entered the correction territory, top-ranked stocks like Spotify Technology, PlayAGS, Potbelly, Matson and AMC Entertainment should outperform in the holiday season.
S&P 500 Enters Correction Zone: Will It Gain/Lose Ahead?
The S&P 500 has fallen 10% since the start of July. The autumn pullback in the stock market sent the S&P 500 into correction territory and made the index record its worst two-week decline of the year due to rising rates, per Wall Street Journal.
The Bank of America believes that the S&P 500 could decline another 5% and test a critical support level that has previously marked the bottom. Agreed, the Fed is likely to enact a rate hike in November. Inflationary pressure, rising rate worries and geopolitical crisis are present. But those threats are currently priced in the valuation. Moreover, inflation is falling and rates are peaking.
Hence, according to Oppenheimer's chief investment strategist John Stoltzfus, the S&P 500 is due for a massive rally by the end of the year, as the Fed is eyeing a dial-back its rate hike momentum, as quoted on Business Insider. In an interview with CNBC on Thursday, Stoltzfus reiterated his S&P 500 price target of 4,900 by the end of the year, marking about a 19% rally in the final two months of the year.
Markets are expecting interest rate cuts by mid-next year, with investors pricing in an 80% chance that rates could be lower than their current level by July 2024, according to the CME FedWatch tool. That could be bullish for stocks, considering that rate hikes wreaked havoc on the S&P 500 down heavily in 2022.
Stock Picks
Against this backdrop, we highlight a few stocks that have a Zacks Rank #1 (Strong Buy) or #2 (Buy) and have witnessed the Zacks Consensus Estimate for their upcoming quarter's earnings surging more than 10% in the past month. You can see the complete list of today's Zacks #1 Rank stocks here.
Spotify Technology
The Zacks Rank #2 company provides music streaming services. The company offers commercial free music and ad-supported services to subscribers. The Zacks Consensus Estimate for the December quarter skyrocketed 2465%.
PlayAGS
The Zacks Rank #2 company is a designer and supplier of electronic gaming machines and other products and services for the gaming industry. The Zacks Consensus Estimate for the December quarter surged 344%.
Potbelly
The Zacks Rank #2 company is a neighborhood sandwich concept. The company manages establishments for consuming food on premises to offers sandwiches, salads, soups, chili, chips, cookies, ice cream and smoothies. The Zacks Consensus Estimate for the December quarter jumped 100%.
Matson
The Zacks Rank #1 company operates as an ocean transportation and logistics company. It offers shipping services in Hawaii, Guam, and Micronesia islands and expedited service from China to southern California. The Zacks Consensus Estimate for the December quarter grew about 42%.
AMC Entertainment
The Zacks Rank #1 company operates as a theatrical exhibition company primarily in the United States and internationally. It owns interests in theatres and screens. The Zacks Consensus Estimate for the December quarter grew about 24.3%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Matson, Inc. (MATX) : Free Stock Analysis Report
Potbelly Corporation (PBPB) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
Spotify Technology (SPOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-10-31
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AMC Entertainment (NYSE:AMC) stock has had a wild ride. The company’s financial performance over the past few years is not just a reflection of past achievements. It’s a vivid indicator of the promising future that lies ahead. This upward trajectory can have a significant impact on the company’s strategic position in the entertainment industry.
A look at the period from 2020 to 2023 reveals a compelling narrative. In 2020, AMC’s revenue stood at a respectable $1.24 billion. However, this number underwent a breathtaking transformation, soaring to a staggering $4.26 billion in 2021. That’s a jaw-dropping 103.47% increase in revenue in just one year, underscoring the company’s remarkable resilience even during challenging times.
A Closer Look at AMC Stock
But the story doesn’t end there. From 2022 to 2023, AMC continues to build on its success, notching a significant 8.95% increase in revenue. This sustained growth is not just a reflection of past achievements but a confident stride into the future. It’s a testament to the company’s adaptability and its capacity to seize opportunities, ensuring a path of continued profitability.
The numbers tell an interesting story of financial prowess, but they also foretell the future. AMC’s impressive revenue growth is a solid foundation that equips the company to navigate any future challenges with confidence. With this robust financial backbone, AMC is well-positioned to capture the opportunities presented by the dynamic entertainment industry.
AMC stock’s commitment to growth is clear in its year-over-year CAPEX growth. In comparison to the sector median, which stands at a modest 4.10%, AMC’s CAPEX Growth (YoY) has surged to an impressive 36.02%.
This substantial variance highlights AMC’s proactive approach to investing in its business, paving the way for continued expansion and innovation.
CAPEX Sales TTM is another telling metric that underscores AMC’s commitment to its strategic investments. AMC’s CAPEX Sales TTM currently stands at 5.23%, which is significantly higher than the sector median of 4.00%.
This heightened investment-to-sales ratio indicates a strong focus on strengthening the company’s infrastructure, services, and customer experience, setting the stage for sustainable growth.
These investments through CAPEX not only enable the company to enhance its existing infrastructure and services but also position it for success in a rapidly evolving entertainment industry. AMC’s proactive approach to capital expenditure ensures that it remains at the forefront of innovation, adapting to changing consumer demands and market dynamics.
New Distribution Model
Taylor Swift’s concert film, “Taylor Swift: The Eras Tour,” made a spectacular debut, generating between $95 million and $97 million in domestic sales during its opening weekend. Notably, it became the highest-grossing concert film of all time, setting new industry benchmarks.
This staggering success had a tangible impact on the AMC stock and revenue performance. AMC stocks surged by 1.9%, breaking a two-day losing streak, in response to the film’s resounding triumph.
Building on the momentum created by Taylor Swift’s film, AMC is gearing up for the release of “Renaissance: A Film by Beyoncé” on December 1. The anticipation around this release is high, as it follows a proven formula of partnering with global music icons.
Beyoncé’s “Renaissance World Tour” garnered international acclaim, attracting over 2.7 million fans from around the world, underscoring its potential to be another revenue generator for AMC stock.
AMC’s role as a theatrical distributor for these concert films not only redefined the distribution model for such productions but also signifies the company’s growing influence in the entertainment industry. Collaborations with Taylor Swift and Beyoncé set a precedent for AMC, demonstrating its ability to offer immersive cinematic experiences that appeal to diverse audiences.
AMC Stock Q3 Report Is Coming
AMC Entertainment’s robust financial performance, remarkable revenue growth, and strategic investments lay a strong foundation for its promising future in the dynamic entertainment industry. Collaborations with renowned artists and the innovative distribution of concert films have enhanced its market influence.
The financial impact of these collaborations will be further elucidated in AMC’s upcoming Q3 earnings report on November 8. Analysts expect Q3 revenue to reflect substantial year-over-year growth of 26.73%, suggesting that the influence of these concert films has contributed to the company’s resilience amid industry challenges.
On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Julia Magas is a writer who covers the latest trends in finance and technology. Her work is published in a number of financial media outlets such as Nasdaq, Cointelegraph, Investing, SeekingAlpha, FXEmpire, and Beincrypto. She primarily covers cryptocurrency and blockchain technology with a focus on market performance, innovations and trends.
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The post AMC Stock Proves It’s Too Early To Write Off Movie Theatre Industry appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-10-30
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AMC
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In the first half of 2023, Wall Street delivered an upbeat performance, with the S&P 500, the Nasdaq and the Dow Jones gaining about 14%, 29.5% and 2.4%, respectively. Better-than-expected corporate earnings and the AI boom were the key trends in the first half.
However, the wining trend faltered in the second half. In July, the S&P 500 and the Nasdaq marked their fifth successive positive month, only to register flat performances in August. Wall Street's vigor waned due to a sequence of bank downgrades and expectations of higher-for-longer interest rates.
September was also not sturdy. As a result, the third quarter was an average-to-downbeat period for investors, mainly due to rising rates. But the feeble trend continued even in the fourth quarter of 2023, with stocks registering a considerable decline in October.
Hence, it is obvious that investors are scratching their heads to find out what lies ahead in the final two months of the year, which forms the all-important holiday season. Over the past decade, the fourth quarter of the year has actually been the best for the stock market, with the Dow, the S&P 500 and the Nasdaq up at least 4% on average, per a CNBC article.
Although the S&P 500 has entered the correction territory, top-ranked stocks like Spotify Technology SPOT, PlayAGS AGS, Potbelly PBPB, Matson MATX and AMC Entertainment AMC should outperform in the holiday season.
S&P 500 Enters Correction Zone: Will It Gain/Lose Ahead?
The S&P 500 has fallen 10% since the start of July. The autumn pullback in the stock market sent the S&P 500 into correction territory and made the index record its worst two-week decline of the year due to rising rates, per Wall Street Journal.
The Bank of America believes that the S&P 500 could decline another 5% and test a critical support level that has previously marked the bottom. Agreed, the Fed is likely to enact a rate hike in November. Inflationary pressure, rising rate worries and geopolitical crisis are present. But those threats are currently priced in the valuation. Moreover, inflation is falling and rates are peaking.
Hence, according to Oppenheimer's chief investment strategist John Stoltzfus, the S&P 500 is due for a massive rally by the end of the year, as the Fed is eyeing a dial-back its rate hike momentum, as quoted on Business Insider. In an interview with CNBC on Thursday, Stoltzfus reiterated his S&P 500 price target of 4,900 by the end of the year, marking about a 19% rally in the final two months of the year.
Markets are expecting interest rate cuts by mid-next year, with investors pricing in an 80% chance that rates could be lower than their current level by July 2024, according to the CME FedWatch tool. That could be bullish for stocks, considering that rate hikes wreaked havoc on the S&P 500 down heavily in 2022.
Stock Picks
Against this backdrop, we highlight a few stocks that have a Zacks Rank #1 (Strong Buy) or #2 (Buy) and have witnessed the Zacks Consensus Estimate for their upcoming quarter’s earnings surging more than 10% in the past month. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spotify Technology (SPOT)
The Zacks Rank #2 company provides music streaming services. The company offers commercial free music and ad-supported services to subscribers. The Zacks Consensus Estimate for the December quarter skyrocketed 2465%.
PlayAGS (AGS)
The Zacks Rank #2 company is a designer and supplier of electronic gaming machines and other products and services for the gaming industry. The Zacks Consensus Estimate for the December quarter surged 344%.
Potbelly (PBPB)
The Zacks Rank #2 company is a neighborhood sandwich concept. The company manages establishments for consuming food on premises to offers sandwiches, salads, soups, chili, chips, cookies, ice cream and smoothies. The Zacks Consensus Estimate for the December quarter jumped 100%.
Matson (MATX)
The Zacks Rank #1 company operates as an ocean transportation and logistics company. It offers shipping services in Hawaii, Guam, and Micronesia islands and expedited service from China to southern California. The Zacks Consensus Estimate for the December quarter grew about 42%.
AMC Entertainment (AMC)
The Zacks Rank #1 company operates as a theatrical exhibition company primarily in the United States and internationally. It owns interests in theatres and screens. The Zacks Consensus Estimate for the December quarter grew about 24.3%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Matson, Inc. (MATX) : Free Stock Analysis Report
Potbelly Corporation (PBPB) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
Spotify Technology (SPOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-10-26
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AMC
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The U.S. economy has defied expectations as it accelerates despite higher interest rates, resumed student loan payments, and geopolitical tensions. Analysts have raised their forecasts, with Goldman Sachs increasing its third-quarter growth estimate to 4% from 3.7%, and High Frequency Economics raising its third and fourth-quarter forecasts. This has led to the emergence of tech stocks to buy.
Despite this momentum, inflation has eased to 3.7% in September, allowing the Federal Reserve to hold off on further rate increases. However, the future remains uncertain, with three possible outcomes: a short-lived momentum, a return of higher inflation and more rate hikes, or a scenario of strong growth with controlled inflation.
No matter the turn-out, now is the perfect time to purchase these future trillion-dollar technology companies; as our economy heals, these tech stocks will follow with strong growth.
Celestica (CLS)
Source: Gorodenkoff via Shutterstock
Celestica (NYSE:CLS) is a leader in technological business design, manufacturing, and supply chains. Currently focused on supply chains, after-market cycling, and the creation of displays, CLS stock is valued at $25.81, up 182.39% YoY.
The smart manufacturing industry in 2022 was valued at $277.81 billion and is forecasted to grow to $658.41 billion by 2029 at a 13.1% 7-year CAGR. Celestica is dominant in the industry, with branches in other sectors improving CLS’s business.
Financially, Celestica had a fantastic Q2 2023 with YoY growth in every essential metric. Revenue was reported at $1.94 billion, or a 12.94% YoY increase, and net income and EPS at $55.5 million and $1.36 grew by 55.9% and 58.62%, respectively. The past quarter’s financial success amounted to larger quantities of display systems to large industry OEMs such as Cisco and Dell. Supplying these industry giants contributes to guaranteed business for the present and future. This makes it one of those tech stocks to buy.
The strongest factor for the recent growth of CLS has originated from the Advanced Technology Solutions (ATS) unit. With ATS totaling 43% of total revenue recently, large advancements through various technologies in aerospace and defense industries have contributed to significant growth in the past quarter, as well as growth for the upcoming quarters. Furthermore, vast and strong development in AI resources has improved resources and products in both supply chain and ATS services, helping bolster upcoming profits in future years.
Overall, strong financials backed by compounding recent advancements improving ATS services will further contribute towards profit and growth in valuation for the upcoming years.
IonQ (IONQ)
Source: Shutterstock
IonQ (NYSE:IONQ) is a quantum computing hardware and software company, staying at the forefront of the quantum computing industry through trapped ion technology in its quantum processing units. Yahoo! Finance has 5 analysts predicting a 1-year price range on IonQ to be between $14.00 and $21.00, with a mean of $17.80.
The quantum computing industry is expected to reach a valuation of $4.37 billion by 2028, growing at a 38.1% CAGR. Growth factors include increased utilization in financial services for its computation and cybersecurity utilities, as well as the potential to cut years of time from drug development through running simulations for trials.
IONQ boasts strong financials. The company reports $5.52 million in revenue for Q2 2023, representing a 111.4% 1-year CAGR. IonQ demonstrates its profitability through its 72.4% gross profit margin, well above the sector median. Management has improved upon operational expenditures over the past year through cash from investing, which grew 36.6%, and net change in cash, which grew 11.6%. All in all, it’s one of those tech stocks to consider.
IonQ shows growth potential through its partnerships that put the company in an attractive position for investors. IonQ has partnered with Switzerland-based quantum computing company QuantamBasel to establish a European quantum data center. This partnership drives the organic expansion of IonQ’s European customer base. The company has also renewed a partnership with the United States Air Force Research Lab (AFRL), as the contract is worth $25.5 million. This renewal contract gives AFRL access to IonQ’s trapped ion technology, enabling further AFRL quantum network research and application development.
IONQ is the technology stock that investors should not miss out on because of the quantum computing industry’s growth, strong financials, a partnership that allows for global expansion, and more mentioned above.
AMC Entertainment (AMC)
Source: rblfmr / Shutterstock.com
AMC Entertainment (NYSE:AMC) is an American movie theater chain with 950 theaters and 10,500 screens globally.
AMC’s stock is down 73.24%YTD at $9.53, but 5 analysts forecast a 12-month price forecast on a median to the high price of $10 to $19 or a 4.1% and 97.7% upside.
The entertainment industry in 2023 is valued at $27.72 billion and is expected to grow at a CAGR of 7.80% to $40.36 billion by 2028. Key factors for this include the increase in penetration of cell phones and the growing amount of free time for the population in many developed nations.
From 2020-2023, revenue grew from $1.24 billion to $4.26 billion, representing a 103.47% change from 2020 to 2021, and a growth of 8.95% from 2022 to 2023. CAPEX Growth (YoY) reached 36.02, 778.80% more than the sector median of a measly 4.10%. CAPEX Sales TTM also reached 5.23%, which is 30.66% more than the sector median of 4.00%. Overall, these metrics indicate that AMC is growing quickly while remaining profitable.
AMC is a dominant force in the movie theater industry, primarily owing to its commanding market share in key regions and its astute positioning of theaters, designed to maximize productivity. Furthermore, we anticipate a substantial increase in revenue in the coming months, driven by the highly anticipated releases of blockbuster movies. As excitement continues to build around these upcoming films, it is virtually certain that audiences will flock to their local AMC theaters for an immersive cinematic experience. This surge in patronage is expected to translate into significant revenue spikes, securing AMC’s relevance for the foreseeable future, spanning at least the next decade.
Overall, due to the solid geographic presence offered by AMC and the next generation of exceptional movies tailored to every consumer’s needs, AMC is a stock that is set to skyrocket in growth.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The post 3 Tech Stocks to Buy Before They Take Off in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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