Good News Is Bad News for AMC StockĪMC’s Wednesday price slump had little to do with its Q4 earnings release. Its Q4 figures show it remains squarely on that path. In October 2022, I wrote that AMC Entertainment could one day become the last theater chain standing. Yet, the adverse price action hides that America’s largest cinema company is recovering. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares have lost around 25% of their value since Tuesday morning, and almost 75,000 additional AMC options will expire worthless on March 3 from the decline.Īny mutual fund manager owning AMC shares would have lost their job by now. Prices of the meme stock initially spiked 5% on better-than-expected financial results, then slumped 13% almost immediately after. The 68-year-old Aron might as well have been talking about AMC shareholders. “Our success could literally vaporize in an instant if we misstep.” To read this article on click here.“We’re all smiles today, but by no means are we out of the woods yet,” warned AMC Entertainment (NYSE: AMC) CEO Adam Aron on Tuesday’s Q4 earnings call. Click to get this free reportĪMC Entertainment Holdings, Inc. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. So, for the shares of AMC Entertainment, a Zacks Rank of 2 is a more conclusive fundamental indication of a potential turnaround. ![]() Moreover, the Zacks Rank has proven to be an excellent timing indicator, helping investors identify precisely when a company's prospects are beginning to improve. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here > ![]() And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. If this is not enough, you should note that AMC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This means that the Wall Street analysts covering AMC are majorly in agreement about the company's potential to report better earnings than what they predicted earlier. The consensus EPS estimate for the current year has increased 22.3% over the last 30 days. That's because empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. Here's What Increases the Odds of a Turnaround for AMCĪn upward trend in earnings estimate revisions that AMC has been witnessing lately can certainly be considered a bullish indicator on the fundamental side. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators. Like every technical indicator, the hammer chart pattern has its limitations. Hammer candles can occur on any timeframe - such as one-minute, daily, weekly - and are utilized by both short-term as well as long-term investors. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal. When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.' A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). This is one of the popular price patterns in candlestick charting. What is a Hammer Chart and How to Trade It? ![]() While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this movie theater operator is a solid fundamental factor that enhances the prospects of a trend reversal for the stock. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support. The price trend for AMC Entertainment (AMC) has been bearish lately and the stock has lost 27.9% over the past week.
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