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Is AMC stock a buy as James Bond returns to the big screen?

on Oct 8, 2021
Updated: Aug 31, 2022
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  • AMC shares on Friday edged slightly lower ahead of “James Bond: No Time to Die” debut in the US and Canada.
  • The film debuts in one of the world’s biggest markets on Friday, potentially providing a boost for AMC stock.
  • It has received positive reviews and critics in the UK, where it debuted last week.

On Friday, AMC Entertainment Holdings Inc. (NYSE:AMC) shares edged slightly lower ahead of Friday’s US and Canada opening for the latest instalment of the James Bond film series. 

James Bond: No Time to Die opens in North America on Friday and based on the positive reviews and critics it received in the UK, it could be a significant boost for the movie theatre stocks like AMC.

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According to initial forecasts, No Time to Die is expected to be one of the best performers in the pandemic era. Last week, Venom: Let There be Carnage delivered a domestic box office pandemic record of $90 million in the opening weekend. 

Daniel Craig’s last Bond film is to come anywhere close to that, it would signal a significant milestone in the recovery of the film industry.

Should you buy AMC ahead of the US debut?

From an investment perspective, AMC shares trade at a steep price-sales ratio of 22.14, making the stock less attractive to value investors. However, analysts are optimistic about its growth prospects, predicting earnings power share to increase by 92.80% this year, before rising further by 74% next year.

As a result, AMC could gain the attention of growth investors willing to overlook the short-term turbulence. And with several films scheduled to release before the end of the year, the Bond film could be the kicker the stock requires to go on a bull run. Learn where to buy AMC in our in-depth guide.

Source – TradingView

Is a channel breakout incoming?

Technically, AMC shares seem to be trading within a descending channel formation in the intraday chart. However, the stock has recently bounced off the trendline support to surge towards the 100-day moving average.

Therefore, with shares far from reaching overbought conditions, a channel breakout could be imminent. 

Investors could target profits at approximately $45.27 or higher at $53.36, while $32.39 and $24.55 are crucial support zones.

An opportunity to buy now?

AMC shares are down more than 21% since 13th September, creating a perfect opportunity to buy ahead of an important period in the film industry.

Therefore, it could be time to buy the AMC stock ahead of its exciting growth prospects.