Trade-Ideas: Cinemark Holdings (CNK) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Cinemark Holdings ( CNK) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cinemark Holdings as such a stock due to the following factors:

  • CNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.4 million.
  • CNK has traded 8,549 shares today.
  • CNK is trading at a new lifetime high.

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More details on CNK:

Cinemark Holdings, Inc., together with its subsidiaries, is engaged in motion picture exhibition business. The company operates theatres in the United States, Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, and Guatemala. The stock currently has a dividend yield of 2.8%. CNK has a PE ratio of 20.3. Currently there are 10 analysts that rate Cinemark Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Cinemark Holdings has been 675,400 shares per day over the past 30 days. Cinemark has a market cap of $4.1 billion and is part of the services sector and media industry. The stock has a beta of 0.70 and a short float of 2.4% with 2.80 days to cover. Shares are up 6% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cinemark Holdings as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 254.0% when compared to the same quarter one year prior, rising from $20.27 million to $71.73 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Media industry and the overall market, CINEMARK HOLDINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $97.87 million or 38.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.60%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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