We recently organized a list of 11 high -risk growth stocks to buy now. Here, we take a detailed look at AMC Entertainment Holdings, Inc. (NYSE:AMC) and its ranking among the best choices.
The stock market has a constantly evolving environment, leaving investors looking for possibilities that promise substantial yields for their investments. Obtaining a coherent placement in the portfolio of these investors is a growth actions. These growth actions have always been much appreciated among investors who are looking for high investment returns. However, another essential characteristic of a growth stock is the risk proportional to its level of yield. In other words, growth actions can provide significant assessment of capital but have increased volatility.
Changes often influence the volatility of growth stocks under market conditions. In this regard, American market conditions have undergone many changes shortly after the new American president entered the oval office. The new prices put into practice have created tensions between the United States and its neighboring countries, including Mexico and Canada. CNBC reported that due to the variation in prices, the price of many products, including cars, has increased. He had an impact on the US stock market. Even the technological industry, which has obtained high expectations, has dropped since the beginning of 2025, although investors still consider many industry companies as well as worthy investments.
While investors fear a potential increase in inflation and recession in the following months, certain growth actions work better while accumulating a high level of risk. Compared to other actions, their performance must be taken into account before deciding to welcome these actions in the portfolio.
Over the past decade, growth actions have considerably surpassed their value counterparts. A Vanguard report has said that over the past 10 years, US growth actions have better performed than American value actions on average 7.8% per year. The upward trend increases the attractiveness of growth stocks for those looking for high yields.
On the other hand, the stock markets can be cyclical, growth and value actions displacing their leadership roles on the market. Cyclic nature suggests that growth stocks can benefit from periods of dominance, but they must not be mistaken as immune to market rotations, which can promote value actions.
An appropriate approach is necessary when investing in high -risk growth actions and a high reward. Growth actions can belong to companies in emerging industries or be in possession of innovative products or services that could quickly attract the market. Although investors can be attracted by the potential of substantial earnings actions, they must also be careful about the associated risks, and therefore, the approach should involve in -depth research and a well -considered investment strategy.
The list that we have created here could offer help in an informed decision -making process for investors with regard to growth actions.
We have applied a screening approach to the conservation of our list of 11 high -risk growth actions and high reward to buy now. The selection criteria have mainly focused on companies with solid profits and sales growth. Since we wanted our list to be made up of stocks with high historical performance and future potential, we have only considered those with a 20% BPA growth rate in the last five years and as a projection of the next five years. In addition, only businesses have more than 20% sales growth in the past five years have been integrated into the list. We considered the volatility of the actions and fixed the beta threshold at 1.5. Finally, market capitalization was limited to small capitalization and more extensive ($ 300 million +). In addition, we have examined the number of hedge funds supporting actions to understand institutional interest in action. To this end, we used the insider monkey database of Q4 2024. Actions are classified according to the potential for the increase in analysts.
Why are we interested in the stocks in which the hedge funds stacked? The reason is simple: our research has shown that we can surpass the market by imitating the main choices of stock of the best hedge funds. The strategy of our quarterly newsletter selects 14 shares with small capitalization and large capitalization each quarter and has rendered 373.4% since May 2014, beating its reference with 218 percentage points (See more details here).
AMC Entertainment Holdings, Inc. (AMC): among the best high -risk growth actions and high reward to buy now
An audience of moviegoers inside a theater, savoring the last cinematographic experience.
Beta: 1.65
Sales growth at 5 years: 20.06%
Number of hedge holders: 20
Upward potential of analysts: 17.69%
The Kansas -based American Cinema Channel, AMC Entertainment Holdings, Inc. (NYSE: AMC) is engaged in the theatrical exhibition sector. The company’s commercial strategy focuses on the supply of exceptional entertainment experiences thanks to innovative cinema technologies. It is one of the largest film exhibition companies in the United States to date, the company has and has operated around 900 theaters and 10,000 screens around the world.
According to the report of the fourth quarter of AMC Entertainment Holdings, Inc. (NYSE: AMC), their income increased by 18% in 2024 compared to the previous year, with an adjusted Ebitda reaching 164.8 million dollars, a triple increase compared to the same quarter last year. The success of recent films such as Wicked, Gladiator 2, Moana 2 and Mufasa: The Lion King contributed to this growth in profits, gaining a positive perspective among market investors.
However, AMC Entertainment Holdings, Inc. (NYSE: AMC) has a high beta of 1.65, indicating significant volatility compared to the market. On the other hand, the BPA growth rate of 39.13% in the past five years and a projection of 74.28% for the next five years suggest a strong profits. Sales have increased by 20.06% in the past five years, reporting high demand for services as well as effective sales strategies.
Based on the Insider Monkey database, the number of hedge funds with ownership of property in AMC Entertainment Holdings, Inc. (NYSE: AMC) remains 20 at the end of the fourth quarter 2024, indicating moderate institutional interest in stock. Analysts estimated an increase of 17.69% for action in a year.
Overall, AMC rank 9th On our list of high -risk growth stocks to buy now. While we recognize the potential of the AMC as an investment, our conviction lies in the conviction that certain AI actions are promising greater to provide higher yields and do it within a shorter period. If you are looking for a stock of AI which is more promising than AMC but which is negotiated within 5 times its income, consult our report on the Stock ai the cheapest.
