Welcome to Episode #7 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Kevin Matras, Zacks Vice President, stock screening and technical analysis wizard, and the editor of the Options Trader newsletter.
Kevin may be the Zacks' options expert, but he is also one of the biggest movie buffs in the office. Tracey is also a big movie fan so that makes them the perfect duo to discuss the upcoming holiday movie season and whether or not you should be buying the movie studio stocks because you love their movies.
Most of the movie studios are now part of larger media conglomerates like Comcast (CMCSA - Analyst Report) which owns Universal Studios and the Jurassic Park and Fast and Furious franchises and Time Warner (TWX - Analyst Report) which owns Warner Brothers.
Investors should remember they're not just buying the studios but all of the companies' other businesses as well.
Look at Disney (DIS - Analyst Report). The Star Wars juggernaut that will be unleashed in just a few weeks. Expectations are high but there are concerns that Disney might not be able to meet them. But Disney's shares have been roiled by changes in the cable business, especially with its franchise ESPN, as more consumers decide to unbundle themselves from the big cable packages.
Sony Corporation (SNE - Analyst Report) has a big hit in the James' Bond film SPECTRE, but the studio business is dwarfed by Sony's gaming and electronics segments. Those areas are doing well, however, with Sony expected to grow earnings by 282% in fiscal 2016.
Tracey and Kevin also debate the future of Lions Gate Entertainment (LGF - Analyst Report) now that the Hunger Games franchise is winding down. It is the smallest of the studio companies as it's not tied in with a big media company. Will the possibility of a Hunger Games stage show and Hunger Games theme park rides help boost the bottom line?
There are a lot of moving parts to the movie stocks.
What are Tracey and Kevin's top stock picks, if any? What do these two film buffs think about the holiday movie season? Sylvester Stallone is getting Oscar buzz for his turn as Rocky in Creed. Yes, it's true!
Listen to the podcast to find out more.