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 $16.5 million.
  • CNK has traded 167,578 shares today.
  • CNK is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CNK with the Ticky from Trade-Ideas. See the FREE profile for CNK NOW at Trade-Ideas

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 25.7. Currently there are 11 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 461,700 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 0.85 and a short float of 1.9% with 4.33 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Friday.

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 reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
  • Despite the current debt-to-equity ratio of 1.82, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Despite the fact that CNK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.96 is high and demonstrates strong liquidity.
  • CINEMARK HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CINEMARK HOLDINGS INC reported lower earnings of $1.28 versus $1.47 in the prior year. This year, the market expects an improvement in earnings ($1.66 versus $1.28).
  • CNK, with its decline in revenue, underperformed when compared the industry average of 9.0%. Since the same quarter one year prior, revenues fell by 14.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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

null

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists