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

on Oct 8, 2021
Updated: Aug 31, 2022
  • 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.

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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. 

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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.

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?

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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?

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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?

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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.

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