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Bear of the Day: AMC Entertainment (AMC)

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You probably don’t need me to point out the fact that nobody goes to the movies anymore. It’s sort of a shame. I remember taking my first dates there, spilling popcorn on myself and dropping the soft drink. At least my Mom said I looked nice when she dropped me off at Old Orchard Mall, while a crowd of my friends clowned me for wearing slacks and a sweater. Those were the glory days of the movie theater before Netflix took over and COVID delivered the knockout blow.

Today’s Bear of the Day is the struggling AMC Entertainment (AMC - Free Report) . AMC Entertainment Holdings, Inc., through its subsidiaries, involved in the theatrical exhibition business. The company owns, operates, or has interests in theatres. As of March 17, 2020, it operated approximately 1,000 theatres and 11,000 screens in the United States and internationally.

AMC Entertainment is in rare air as far as our Zacks Rank is concerned. It is currently a Zacks Rank #5 (Strong Sell), a function of earnings estimates continuing to tumble. However, it also features the rare combination of Fs on our Style Scores. That’s an F for Value, F for Growth, F for Momentum, and a VGM Composite Score of, you guessed it, F.

Five analysts have slashed their earnings estimates for the current year while three have done so for next year. The results are absolutely disheartening. Our current year Zacks Consensus Estimate has plummeted from a $1.17 loss ninety days ago to a $27.75 loss. That’s the single largest earnings loss I have ever seen for any stock. Next year’s number is down from a 75-cent loss to $2.26. Revenues are estimated to tumble by 52.4% this year to $2.6 billion versus $5.47 billion last year.

AMC Entertainment Holdings, Inc. Price and Consensus

AMC Entertainment Holdings, Inc. Price and Consensus

AMC Entertainment Holdings, Inc. price-consensus-chart | AMC Entertainment Holdings, Inc. Quote

The Leisure and Recreation Services industry ranks in the Bottom 41% of our Zacks Industry Rank. Surprisingly, there are a handful of Zacks Rank #2 (Buy) stocks in this industry. Those include Zacks Rank #2 (Buy) stocks RCI Hospitality (RICK - Free Report) and The Madison Square Garden Company (MSGS - Free Report) .

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