Blue-Chip

Keep an Eye on These US-Listed Beaten-Down Stocks – ZM, AMC

March 04, 2022 | Team Kalkine
Keep an Eye on These US-Listed Beaten-Down Stocks – ZM, AMC

 

Zoom Video Communications, Inc.

Zoom Video Communications, Inc. (NASDAQ: ZM) is a place where people can connect, share ideas, make plans, and create a future that is only limited by their imagination. It is the first frictionless communications platform that began with video as its base.

Key Highlights:

  • The company reported a 54.63% increase in revenues to USD 4.10 billion in FY22 (ended January 31, 2022), compared to USD 2.65 billion in FY21.
  • ZM witnessed a boost in net income to USD 1.38 billion in FY22, compared to USD 0.67 billion in FY21.
  • The company's cash conversion cycle deteriorates to 29 days in FY22, compared to 26.4 days in FY21.
  • Its EBITDA and net margin improved to 29.3% and 33.6% in FY22, respectively, from 26.3% and 25.4% in FY21.
  • Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish trend.
  • The stock has made a new 52-week low today.
  • ZM stock price has fallen 40.16% and 61.11% in the past three and six months, respectively.

Conclusion:

Considering the company's robust topline and bottom-line performances, macroeconomic headwinds, improving margins, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 114.75, down 5.64% as of March 03, 2022, at 1:44 PM ET.

Three-Year Technical Price Chart (as of March 03, 2022, at 1:44 PM ET). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.

 

AMC Entertainment Holdings, Inc.

AMC Entertainment Holdings, Inc. (NYSE: AMC) is a theatrical production firm. Box office admissions and theatre food and beverage sales are the two primary sources of revenue for its theatrical productions. It owned 946 theatres with 10,562 screens in 12 countries as of December 31, 2021, including 593 theatres with 7,755 screens in the United States and 353 theatres with 2,807 screens in European markets and Saudi Arabia.

Key Highlights:

  • The company's reported a significant increase in total revenues to USD 2.53 billion in FY21 (ended December 31, 2021) from USD 1.24 billion in FY20.
  • In FY21, AMC reported a loss of USD 1.27 billion, compared to USD 4.59 billion in FY20.
  • The company's long-term debt to total capital ratio was 147.4% in FY21, compared to a 24.8% industry median, indicating a highly leveraged balance sheet.
  • Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish trend.
  • Stock is leaning towards the lower-band of the 52-week range of USD 7.50 to USD 77.62.
  • AMC's stock price has fallen 39.92% and 59.01% in the past three and six months, respectively.

Conclusion:

Considering the robust topline, continuous losses, leveraged balance sheet, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 18.20, down 1.78% as of March 03, 2022, 1:49 PM ET.

Three-Year Technical Price Chart (as of March 03, 2022, at 1:49 PM ET). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.


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