S&P 500   3,970.99
DOW   32,237.53
QQQ   310.89
MarketBeat Week in Review – 3/20 - 3/24
Modern Day Options Trading For Beginners! (Ad)pixel
Germany, EU reach agreement in combustion engine row
Intel co-founder, philanthropist Gordon Moore dies at 94
Forbes mag says this strategy "like finding money in the street" (Ad)pixel
Judge rules online archive's book service violated copyright
Biden's moves on Alaska drilling, TikTok test young voters
Forbes mag says this strategy "like finding money in the street" (Ad)pixel
Ruling halts oil exports from Iraq's Kurdish area via Turkey
Finnish leadership condemns attack on veteran lawmaker
S&P 500   3,970.99
DOW   32,237.53
QQQ   310.89
MarketBeat Week in Review – 3/20 - 3/24
Modern Day Options Trading For Beginners! (Ad)pixel
Germany, EU reach agreement in combustion engine row
Intel co-founder, philanthropist Gordon Moore dies at 94
Forbes mag says this strategy "like finding money in the street" (Ad)pixel
Judge rules online archive's book service violated copyright
Biden's moves on Alaska drilling, TikTok test young voters
Forbes mag says this strategy "like finding money in the street" (Ad)pixel
Ruling halts oil exports from Iraq's Kurdish area via Turkey
Finnish leadership condemns attack on veteran lawmaker
S&P 500   3,970.99
DOW   32,237.53
QQQ   310.89
MarketBeat Week in Review – 3/20 - 3/24
Modern Day Options Trading For Beginners! (Ad)pixel
Germany, EU reach agreement in combustion engine row
Intel co-founder, philanthropist Gordon Moore dies at 94
Forbes mag says this strategy "like finding money in the street" (Ad)pixel
Judge rules online archive's book service violated copyright
Biden's moves on Alaska drilling, TikTok test young voters
Forbes mag says this strategy "like finding money in the street" (Ad)pixel
Ruling halts oil exports from Iraq's Kurdish area via Turkey
Finnish leadership condemns attack on veteran lawmaker
S&P 500   3,970.99
DOW   32,237.53
QQQ   310.89
MarketBeat Week in Review – 3/20 - 3/24
Modern Day Options Trading For Beginners! (Ad)pixel
Germany, EU reach agreement in combustion engine row
Intel co-founder, philanthropist Gordon Moore dies at 94
Forbes mag says this strategy "like finding money in the street" (Ad)pixel
Judge rules online archive's book service violated copyright
Biden's moves on Alaska drilling, TikTok test young voters
Forbes mag says this strategy "like finding money in the street" (Ad)pixel
Ruling halts oil exports from Iraq's Kurdish area via Turkey
Finnish leadership condemns attack on veteran lawmaker

AMC Entertainment Is On Track For Blockbuster Results 

AMC Entertainment Is On Track For Blockbuster Results 

AMC Rides Wave Of Blockbuster Movie Openings 

While the movie industry is still a bit shy of regaining its pre-pandemic business levels AMC Entertainment (NASDAQ: AMC) is on track for a blockbuster quarter. The last few months have seen no end of high-grossing movie openings, and the trend is set to continue. The latest is Disney’s (NYSE: DIS) Thor: Love And Thunder, which amazed critics with its $140+ million opening weekend. What this means for AMC Entertainment and its investors is an opportunity to get into this stock at the lowest levels in over a year and well before the good news is released. AMC Entertainment is scheduled to release earnings in the first week of August and should easily outpace the consensus. 

The analysts expect revenue to grow 39% sequentially to $1.18 billion, and we think this underestimates the rebound. The revenue growth is also 16% higher than last year but still more than 20% down from the 2019 quarter. In our view, revenue could easily top the $1.25 billion mark and come with favorable guidance, if not profitability. In regard to the analyst's ratings, there hasn’t been much activity over the past year, and what there is, isn’t bullish. The two commentaries that have any relevance to today’s opportunity have the stock pegged at a weak Sell with a price target about 50% below the current price action. If the company can perform as we expect, the analyst sentiment should also begin to shift. 


The Institutions Are Buying AMC Entertainment 

The institutional holdings in AMC Entertainment aren’t large at 35%, and the activity isn’t robust, but it is bullish. The institutions have been net buyers since the pandemic set in, and that trend extended into the 3rd quarter. This has the market tilted in favor of the bulls despite the high short interest, which we view as another catalyst for higher share prices. The short interest is running very close to 20% and has not changed much over the past month or so. Assuming the Q2 results align with our expectations, the short-covering should begin shortly after. If we say the results are even better, we may see a short-squeeze that takes the price action up to the $30 level or higher, a gain of more than 100% from current price levels. 

CEO Adam Aron recently commented on the short interest and when he thought it was right to “pounce” on the short market and what he said amounts to “wait and see what we report for Q2”. 

"I keep getting asked, 'Wen pounce?' Know this: 1. I always keep my word. 2. I’ve said publicly that a pounce would not happen before Second Quarter 2022 earnings are announced. 3. Press release issued today that Q2 earnings are to be announced on Thurs, August 4. Read between those lines."

The Technical Outlook: AMC Entertainment Holdings Braces For Big Move

Shares of AMC Entertainment Holdings have been in a correction for several quarters but hit a bottom as the summer was beginning. The price action is drifting higher in the wake of that bottom and looks ready to move higher given the right catalyst. Assuming the Q2 report is a good one, we see this stock moving above the 150-day EMA at least and possibly above the $25 level as well. However, if the shorts start running scared, this stock could easily move above the $30 level. 

AMC Entertainment On Track For  Blockbuster Results 


10 Best Cheap Stocks to Buy Now

MarketBeat just released its list of 10 cheap stocks that have been overlooked by the market and may be seriously undervalued. Click the link below to see which companies made the list.

Get This Free Report
10 Best Cheap Stocks to Buy Now Cover

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
AMC Entertainment (AMC)
1.3189 of 5 stars
$4.47flatN/A-3.26Reduce$3.90
Walt Disney (DIS)
3.0293 of 5 stars
$94.08-1.8%N/A51.69Moderate Buy$128.92
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.

Disney Stock, When Will The Magic Come Back?

Laycee and Chris from MarketBeat discuss Disney's (NYSE:DIS) reliance on streaming and how economy may affect attendance at the company’s theme parks

Featured Articles and Offers

Search Headlines: