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Bear of the Day: Marcus (MCS)

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If you were making a list of industries to avoid investing in during a worldwide pandemic, movie theaters and hotels would top that list. Unfortunately, the companies in these industries have nowhere to hide. All they can really do is try to weather the storm, and hope they have enough cash on hand to come out on the other side.

Today’s Bear of the Day is a stock with exposure to both these industries. It’s Marcus (MCS - Free Report) . The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. As of March 17, 2020, it owned or operated 1,110 screens at 91 locations in 17 states under the Marcus Theatres, Movie Tavern by Marcus, and BistroPlex brands; and owned and managed 20 hotels, resorts, and other properties in eight states. The company also operates a family entertainment center under the Funset Boulevard name in Appleton, Wisconsin, as well as owns and operates a retail outlet under the name of Ronnie's Plaza. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development.

Marcus is currently a Zacks Rank #5 (Strong Sell). It also features a Zacks Growth Style Score of F, Momentum of D, and VGM Composite Score of D. Further, the Leisure and Recreational Services industry is in the Bottom 1% of our Zacks Industry Rank. The reason for the unfavorable rank is the series of negative earnings estimate revisions over the last thirty days. Two analysts have cut earnings for the current year and next year. These bearish revisions have cut down the current year Zacks Consensus Estimate from a $2.82 loss to a $4.01 loss. Next year’s number is off from a 4-cent loss to a $1.09 loss.

Investors looking at other stocks within the same industry will find several Zacks Rank #3 (Hold) stocks, but no stocks with better ranks. Among the Zacks Rank #3 (Hold) stocks are Caesars Entertainment (CZR - Free Report) and Cedar Fair (FUN - Free Report) .

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Marcus Corporation The (MCS) - free report >>

Cedar Fair, L.P. (FUN) - free report >>

Caesars Entertainment, Inc. (CZR) - free report >>

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