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AMC Entertainment (AMC) Gains But Lags Market: What You Should Know

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In the latest trading session, AMC Entertainment (AMC - Free Report) closed at $23.31, marking a +0.04% move from the previous day. The stock lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.61%.

Prior to today's trading, shares of the movie theater operator had gained 40.62% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.21% and the S&P 500's gain of 5.64% in that time.

AMC Entertainment will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMC Entertainment to post earnings of -$0.42 per share. This would mark year-over-year growth of 70.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $767.03 million, up 417.22% from the year-ago period.

AMC's full-year Zacks Consensus Estimates are calling for earnings of -$0.56 per share and revenue of $4.77 billion. These results would represent year-over-year changes of +77.6% and +88.59%, respectively.

It is also important to note the recent changes to analyst estimates for AMC Entertainment. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.65% higher within the past month. AMC Entertainment is currently sporting a Zacks Rank of #3 (Hold).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

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.

To follow AMC in the coming trading sessions, be sure to utilize Zacks.com.


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