BTCMarketcap Broker Talks About Current Performance Of Cyclical Stocks


London, UK, 4th Dec 2021, The best stocks to buy are the ones that are going up now because they are trending up…and are likely to continue trending up for some time. We call these “cyclical” stocks…they follow economic cycles. Which cyclical stocks should you be watching right now?

BTCMarketcap broker gives the list of top cyclical stocks you can watch to determine which might be good buys based on their current performance and the stage of their cycle:

Cinemark:

Cinemark is a cyclical stock. It has seen better days, but its close ties to the industry means it may be worth considering for those who can stomach some risk. Cinemas are returning thanks in part due to popular demand like Star Wars: The Force Awakens which CNK hosted screenings of before release date.

Cinemark currently trades at $21 per share as of 1:33 p.m. EST hours.

If we consider some of their peers: Regal Entertainment Group and Carmike Cinema saw 28 and 24% growth respectively and IMAX Corporation, National CineMedia and AMC Entertainment Holdings grew at 14%, 20% and 4%. However, Cinemark’s earnings were down 23% last quarter compared with last year. Analysts believe Cinemark’s weak earnings are due to the release of fewer movies than expected in the quarter. Cinemark has an A+ S&P rating. However, this rating is based on how Cinemark did last year and not this year which was poor…hence the reason why investors’ sentiment towards them isn’t great.

Cinemark’s close ties to the industry might be problematic if there is another box office slump – but that seems unlikely for now. Cinemark has something of a “floor” in cinema ticket prices because cinemas can’t drop below certain levels (and they’re probably not coming back any time soon). It’s always worth checking analysts’ ratings on stocks, but Cinemark seems like a good bet right here. For more information about Cinemark click here.

AMC Entertainment Holdings:

AMC Entertainment Holdings Inc. (NASDAQ:AMC) is one of the largest movie theatre chains in the world with 5,034 screens across 346 theatres in Europe and America. They are known for their IMAX technology and their premium large format theatres.

AMC Entertainment Holdings Inc. (NASDAQ:AMC) is a non-cyclical stock which means it tends to do well regardless of what the economy is doing. More specifically AMC’s earnings tend to grow as box office numbers rise, and they fall as box office numbers fall (but not by as much as other exhibitors). This risky business may be why one analyst has rated them Outperform while another has given them Neutral (and thus it depends on which you look at).

AMC Entertainment Holdings Inc. (NASDAQ:AMC) currently trades at $17 per share as of 1:33 p.m. ET. They have seen 52% growth year on year and 7% growth on the last quarter.

Macquarie Research released a report saying that AMC Entertainment Holdings Inc. (NASDAQ:AMC) stocks are set to rise 20-35% next year thanks to what they see as strong box office numbers. That same note also saw them raise their earnings per share estimate for this year from $1.45-$1.90 to $2-$2.20 which would represent 38%-52% growth on previous years’ earnings.

Credit Suisse have rated AMC Entertainment Holdings Inc. (NASDAQ:AMC) at Outperform with a price target of $19 which implies an EPS of about 89 cents or 45% growth compared to analyst estimates of 50 cents in 2016 and 76 cents in 2017 – which is still a very healthy growth rate.

Disney:

The Walt Disney Company (NYSE:DIS) is a media and entertainment conglomerate that makes money through an extensive range of subsidiaries, such as the American Broadcasting Corporation (ABC), ESPN Inc., Pixar Animation Studios, Marvel Entertainment and The Muppets Studio. They’re also in the process of acquiring Twenty-First Century Fox for $52 billion which will give Disney access to their vast library of content and their distribution channels…so long as US regulators let them get away with it!

Due to all these acquisitions, we believe investors should be careful when investing in Disney (just like any other acquisitive company). However, we believe this risk can be offset by strong future growth potential. Analysts seem to agree; they’ve given DIS a consensus ” Strong Buy “.

DIS currently trades at $102.30 per share as of 1:33 p.m. ET, which implies an earnings per share of $5.19 in FY 2016, and a predicted growth rate is 15%.

The analysts seem to think so too, if analyst ratings are anything to go by…two have rated it a Strong Buy, six have rated it a Buy, one has given it a Hold rating and two have given it a Sell rating – that’s only 13% sell ratings! That being said DIS does trade on over 18x forward P/E which is quite high for such a large company.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.