On Monday AMC Entertainment Holdings Inc. (NYSE:AMC) shares gained 2.66% after announcing solid monthly sales. The company said it received record theatre attendance last month, thus reporting the highest revenue for a single month since February 2020.
The company could continue witnessing a ramp-up in monthly revenue growth in November and December amid the several blockbuster movies scheduled to premiere and a busy holiday season. The company said its ticket admissions for October hit new 20-month highs both domestically and internationally.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
From an investment perspective, AMC shares trade at a steep P/S ratio of 20.67, making the stock less attractive to value investors.
However, analysts are optimistic about its growth prospects. They expect its earnings per share to grow by 92.80% this year before increasing by 74.10% next year.
Therefore, although bargain hunters might find the stock less compelling, it could gain the attention of long-term growth investors.
Technically, AMC shares seem to be trading within a descending channel formation in the intraday chart. However, the stock has recently bounced back to avoid falling into oversold conditions, thus creating an interesting opportunity for investors.
Therefore, with shares far from reaching overbought conditions and considerably below the 100-day moving average, investors could target extended gains at about $41.36, or higher at 448.63.
On the other hand, if the stock finds strong trendline resistance, triggering a pullback, it could find support at $32.29 and $25.53.
In summary, although AMC shares trade at a steep P/E ratio, its exciting growth prospects could attract long-term investors, thus pushing the stock price higher.
Therefore, with shares gar from reaching overbought conditions and revenues on the rise, it could be time to buy the stock.
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
There is good reason to be afraid. Previous down markets have seen declines in excess…
United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are two robust logistics companies. Both…
Canadian crypto mining firm Bitfarms sold roughly $62 million worth of Bitcoin (BTC) in June,…
Invezz does not provide financial advice. Our aim is to simplify information about investing, enabling…
Noma, a Japanese film studio, has announced that it is producing three feature films that…
Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a…