Advancements in AI Trading: 7.17% Profit for AMC
AMC Entertainment Holdings, Inc. (AMC) is a popular stock that has been garnering attention from investors due to its volatile nature. Recently, an AI trading robot from Day Trader: Medium Volatility Stocks for Active Trading (TA&FA) has been performing well in Tickeron's robot factory, generating 7.17% for AMC over a week. However, as a technical analyst, it is important to examine both the short-term and long-term trends of the stock, along with the recent earnings report.
On May 04, 2023, AMC broke above its upper Bollinger Band, which could be an indication that the stock is set to drop. Typically, when a stock breaks above its upper Bollinger Band, it is considered overbought and may be due for a correction. In this case, the A.I.dvisor looked at 43 similar instances where the stock broke above the upper band and found that in 37 of those cases, the stock fell afterwards, putting the odds of success at 86%. As such, investors may want to consider selling the stock or exploring put options to protect against a potential decline.
It is also important to examine the recent earnings report of AMC. On May 05, the company reported earnings per share of -12 cents, which beat the estimate of -15 cents. With 3.66M shares outstanding, the current market capitalization sits at 4.61B. While the earnings report may provide some short-term relief for the stock, it is important to note that AMC has been struggling financially due to the pandemic's impact on the movie theater industry. As such, investors should consider the company's long-term prospects and not solely focus on the recent earnings report.
The recent performance of the AI trading robot from Day Trader: Medium Volatility Stocks for Active Trading (TA&FA) is impressive, but as a technical analyst, it is important to look at both short-term and long-term trends of the stock. With AMC breaking above its upper Bollinger Band and the company's struggles in the movie theater industry, investors should exercise caution when investing in this stock.
AMC's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for AMC turned positive on June 09, 2023. Looking at past instances where AMC's MACD turned positive, the stock continued to rise in of 36 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AMC's RSI Oscillator exited the oversold zone, of 41 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 61 cases where AMC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on June 09, 2023. You may want to consider a long position or call options on AMC as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMC advanced for three days, in of 266 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
AMC moved below its 50-day moving average on May 23, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMC crossed bearishly below the 50-day moving average on May 25, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMC broke above its upper Bollinger Band on May 04, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for AMC entered a downward trend on June 09, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.361). P/E Ratio (0.000) is within average values for comparable stocks, (74.530). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.152). AMC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.058). P/S Ratio (1.325) is also within normal values, averaging (111.062).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. AMC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AMC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a holding company with interest in movie theatres
Industry MoviesEntertainment
AMC and
Correlation & Price change
A.I.dvisor indicates that over the last year, AMC has been loosely correlated with MCS. These tickers have moved in lockstep 44% of the time. This A.I.-generated data suggests there is some statistical probability that if AMC jumps, then MCS could also see price increases.
| Ticker / NAME | Correlation To AMC | 1D Price Change % | ||
|---|---|---|---|---|
| AMC | 100% | +1.92% | ||
| MCS - AMC | 44% Loosely correlated | -1.43% | ||
| CNK - AMC | 40% Loosely correlated | +1.63% | ||
| ROKU - AMC | 38% Loosely correlated | +0.55% | ||
| IMAX - AMC | 37% Loosely correlated | -0.38% | ||
| DIS - AMC | 35% Loosely correlated | -0.65% | ||
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