The market has bounced sharply off the 50-day, en route to the 200-day. After a failure there, it feels like everything is letting loose. To be honest, this could be a great chance for astute investors to buy some solid companies off the lows. But, it’s also a trap for those buying stocks with weak earnings trends that are beginning to get worse. One of those weaker stocks is today’s Bear of the Day. I’m talking about Zacks Rank #5 (Strong Sell) IMAX (IMAX Quick QuoteIMAX - Free Report) .

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company worldwide. It offers cinematic solution through proprietary software, theater architecture, intellectual property, and specialized equipment. The company offers IMAX Digital Re-Mastering (DMR), a proprietary technology that digitally enhances the image resolution, visual clarity, and sound quality of motion picture films for projection on IMAX screens; IMAX theater systems to exhibitor customers through sales, leases, and joint revenue sharing arrangements; and digital projection systems. 

Image Source: Zacks Investment Research

The reason for the unfavorable ranks stems from three analysts cutting their earnings estimates for the current year and four analysts cutting their estimates for next year. The negative revisions have dropped our Zacks Consensus Estimates from 47 cents to 28 cents for the current year and 92 cents to 83 cents for next year.

The Film and Television Production and Distribution industry ranks in the Bottom 30% of our Zacks Industry Rank. However, there are two stocks which are currently in the good graces of our Zacks Rank. Those two include Zacks Rank #2(Buy) Lions Gate Entertainment (LGF.A) and World Wrestling Entertainment .