Why AMC Entertainment (AMC) Dipped More Than Broader Market Today

• AMC
  -6.38%

AMC Entertainment (AMC) closed the most recent trading day at $3.08, moving -6.38% from the previous trading session. This change lagged the S&P 500’s 0.17% loss on the day. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 0.09%.

Shares of the movie theater operator have appreciated by 24.62% over the course of the past month, outperforming the Consumer Discretionary sector’s loss of 8.3%, and the S&P 500’s loss of 0.24%.

The investment community will be paying close attention to the earnings performance of AMC Entertainment in its upcoming release. The company is expected to report EPS of -$0.01, up 95.24% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.45 billion, indicating a 11.68% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of -$0.22 per share and a revenue of $5.55 billion, demonstrating changes of +77.08% and +14.56%, respectively, from the preceding year.

Any recent changes to analyst estimates for AMC Entertainment should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, AMC Entertainment possesses a Zacks Rank of #2 (Buy).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.