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Cinemark Holdings Inc (CNK) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Cinemark Holdings (CNK - Free Report) ? Shares have been on the move with the stock up 8% over the past month. The stock hit a new 52-week high of $30.1 in the previous session. Cinemark Holdings has gained 110.5% since the start of the year compared to the 6.1% move for the Zacks Consumer Discretionary sector and the 14.1% return for the Zacks Leisure and Recreation Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 2, 2024, Cinemark reported EPS of $0.32 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 5.91%.
For the current fiscal year, Cinemark is expected to post earnings of $1.48 per share on $3 billion in revenues. This represents a 10.45% change in EPS on a -2.02% change in revenues. For the next fiscal year, the company is expected to earn $1.91 per share on $3.35 billion in revenues. This represents a year-over-year change of 29.28% and 11.64%, respectively.
Valuation Metrics
Cinemark may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cinemark has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.7X. On a trailing cash flow basis, the stock currently trades at 9.8X versus its peer group's average of 9.7X. Additionally, the stock has a PEG ratio of 2. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Cinemark currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cinemark fits the bill. Thus, it seems as though Cinemark shares could have a bit more room to run in the near term.
How Does CNK Stack Up to the Competition?
Shares of CNK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Royal Caribbean Cruises Ltd. (RCL - Free Report) . RCL has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Royal Caribbean Cruises Ltd. beat our consensus estimate by 2.97%, and for the current fiscal year, RCL is expected to post earnings of $13.55 per share on revenue of $16.43 billion.
Shares of Royal Caribbean Cruises Ltd. have gained 21.3% over the past month, and currently trade at a forward P/E of 18.08X and a P/CF of 15.88X.
The Leisure and Recreation Services industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CNK and RCL, even beyond their own solid fundamental situation.
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Cinemark Holdings Inc (CNK) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Cinemark Holdings (CNK - Free Report) ? Shares have been on the move with the stock up 8% over the past month. The stock hit a new 52-week high of $30.1 in the previous session. Cinemark Holdings has gained 110.5% since the start of the year compared to the 6.1% move for the Zacks Consumer Discretionary sector and the 14.1% return for the Zacks Leisure and Recreation Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 2, 2024, Cinemark reported EPS of $0.32 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 5.91%.
For the current fiscal year, Cinemark is expected to post earnings of $1.48 per share on $3 billion in revenues. This represents a 10.45% change in EPS on a -2.02% change in revenues. For the next fiscal year, the company is expected to earn $1.91 per share on $3.35 billion in revenues. This represents a year-over-year change of 29.28% and 11.64%, respectively.
Valuation Metrics
Cinemark may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cinemark has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.7X. On a trailing cash flow basis, the stock currently trades at 9.8X versus its peer group's average of 9.7X. Additionally, the stock has a PEG ratio of 2. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Cinemark currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cinemark fits the bill. Thus, it seems as though Cinemark shares could have a bit more room to run in the near term.
How Does CNK Stack Up to the Competition?
Shares of CNK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Royal Caribbean Cruises Ltd. (RCL - Free Report) . RCL has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Royal Caribbean Cruises Ltd. beat our consensus estimate by 2.97%, and for the current fiscal year, RCL is expected to post earnings of $13.55 per share on revenue of $16.43 billion.
Shares of Royal Caribbean Cruises Ltd. have gained 21.3% over the past month, and currently trade at a forward P/E of 18.08X and a P/CF of 15.88X.
The Leisure and Recreation Services industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CNK and RCL, even beyond their own solid fundamental situation.