NEW YORK (TheStreet) -- The Memorial Day weekend kicks off a crucial time for movie and entertainment companies -- the summer blockbuster movie season.
Gross domestic box office receipts are up 4.5% to $3.94 billion this year as of May 20, compared to a year ago, according to Rentrak. But the summer season is an important period for big movie distributors including Time Warner's (TWX) Warner Bros., Paramount Group's (PGRE) Paramount Pictures, 21st Century Fox (FOXA) and Comcast's (CMCSA) Universal Pictures.
Some of the most anticipated movies to be released this summer include: Warner Bros. San Andreas, Entourage and Magic Mike XXL; Paramount's Terminator: Genisys; Fox's Fantastic Four and Universal's Jurassic World and Minions, among others.
Obviously the success or failure of the films could have reverberations on the stocks of these companies. Here are five movie and entertainment companies that are buy-rated according to TheStreet Ratings. And when you're done be sure to check out airline stocks to buy.
TheStreet Ratings, TheStreet's proprietary ratings tool, projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.