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AMC Entertainment (AMC) Falls More Steeply Than Broader Market: What Investors Need to Know

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AMC Entertainment (AMC - Free Report) ended the recent trading session at $1.55, demonstrating a -3.42% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1%.

Prior to today's trading, shares of the movie theater operator had lost 16.58% lagged the Consumer Discretionary sector's gain of 0.09% and the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of AMC Entertainment in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.06, marking a 66.67% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.39 billion, indicating a 6.23% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1.15 per share and a revenue of $4.95 billion, indicating changes of +10.16% and 0%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AMC Entertainment. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMC Entertainment presently features a Zacks Rank of #3 (Hold).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 98, this industry ranks in the top 40% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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