U.S. markets closed
  • S&P 500

    3,585.62
    -54.85 (-1.51%)
     
  • Dow 30

    28,725.51
    -500.10 (-1.71%)
     
  • Nasdaq

    10,575.62
    -161.89 (-1.51%)
     
  • Russell 2000

    1,664.72
    -10.21 (-0.61%)
     
  • Crude Oil

    79.74
    -1.49 (-1.83%)
     
  • Gold

    1,668.30
    -0.30 (-0.02%)
     
  • Silver

    19.01
    +0.30 (+1.62%)
     
  • EUR/USD

    0.9801
    -0.0018 (-0.19%)
     
  • 10-Yr Bond

    3.8040
    +0.0570 (+1.52%)
     
  • GBP/USD

    1.1166
    +0.0043 (+0.38%)
     
  • USD/JPY

    144.7290
    +0.2860 (+0.20%)
     
  • BTC-USD

    19,416.35
    +40.31 (+0.21%)
     
  • CMC Crypto 200

    443.49
    +0.06 (+0.01%)
     
  • FTSE 100

    6,893.81
    +12.22 (+0.18%)
     
  • Nikkei 225

    25,937.21
    -484.84 (-1.83%)
     

Should You Buy Cinemark (CNK) Ahead of Earnings?

·2 min read

Investors are always looking for stocks that are poised to beat at earnings season and Cinemark CNK may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Cinemark is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for CNK in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at a loss of 12 cents per share for CNK, compared to a broader Zacks Consensus Estimate of a loss of 14 cents per share. This suggests that analysts have very recently bumped up their estimates for CNK, giving the stock a Zacks Earnings ESP of +9.32% heading into earnings season.

Cinemark Holdings Inc Price and EPS Surprise

Cinemark Holdings Inc Price and EPS Surprise
Cinemark Holdings Inc Price and EPS Surprise

Cinemark Holdings Inc price-eps-surprise | Cinemark Holdings Inc Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that CNK has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Cinemark, and that a beat might be in the cards for the upcoming report.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cinemark Holdings Inc (CNK) : Free Stock Analysis Report

To read this article on Zacks.com click here.