As #AMCSqueeze trends once again, is AMC stock a buy now?

Popular meme stock AMC Entertainment (NYSE:AMC) on Wednesday pulled back nearly 10% to end an 8-day sequence of consecutive gains. The AMC stock had gained nearly 56% as of Tuesday as one of the original “meme stocks” dominated social media mentions with the hashtag #AMCSqueeze over the past few days.

Is it too late to buy AMC stock after the recent surge in price? Let’s take a look.

AMC stock’s fundamental outlook: aggressive growth prospects

From a fundamental perspective, AMC stock appears to be struggling for profits based on the trailing 12-month earnings. This is a common feature in most aggressive growth stocks. AMC’s earnings per share are expected to grow by 91.90% this year and by 73.60% next year as COVID-19 restrictions ease and people become more comfortable in going out for entertainment.

This should not only push the company back to profitability after more than a year of hardship but the case can be made for a multi-year growth outlook. In fact, major studios have already confirmed multiple potential Blockbuster films that will be released as far back as 2025.

AMC’s current PEG ratio of just 0.01 suggests that better days lie ahead in AMC’s growth story. 

AMC Stock technical overview

From a technical perspective, shares of AMC stock appear to have recently pulled back after a sequence of gains. The stock appeared to find temporary support just above the $12.00 level on Wednesday, which triggered a slight rebound. 

The stock is trading closer to the oversold levels of the 14-hour RSI in the 60-min chart. This will boost the upside potential. Investors can target rebound profits at around $14.41 or higher at $15.99 going into the tail-end of the week. The main support zones can be found at $11.01 at the 100-hour moving average and lower at $8.97.

Bottom line: Not too late to buy AMC stock

AMC stock is classed as a meme stock because of the influence social media interactions have on its price. However, when you look at the company’s growth prospects, especially after people return to theatres, there is more to it than just hype.

The company will soon begin to turn profits again based on projections, and this will make it even more exciting in the eyes of investors. The pullback is a good opportunity to buy AMC stock now.