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Netflix Rules Movies Group, But Watch These 2 India, China Names

Streaming entertainment leader Netflix continues to cultivate its juggernaut status. But it is not the only stock powering the market-leading advance of film and entertainment stocks.

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The 20 top gains among industry groups in the five days through Tuesday included only three groups with top-20 rankings from IBD. Those were the Leisure-Movies Related group, Internet-Content and enterprise software developers.

The movies group easily outran all others. It rose 5.2%, vs. the internet content group’s 4.3% gain and a 4% advance for the enterprise software developers.

Netflix (NFLX) is clearly the big dog in the movies group. It posted a 4.9% gain over the five-day period. That pushed it toward new highs and further into its profit-taking zone with expectations high ahead of its Q2 report.

The group has ranked No. 1 for most of the past four weeks among the 197 groups tracked by IBD. It is not home to the big, diversified media names such as Walt Disney (DIS) and 21st Century Fox (FOXA). Yet it holds plenty of other recognizable names.

Mixed June-Quarter Expectations

Lion’s Gate Entertainment (LGFA) has been the breeding ground for everything from “Rambo” to “The Hunger Games.” It climbed 3.1% in the five sessions through Tuesday. Cinemark Holdings (CNK), which operates more than 300 theaters with 4,500 movie screens across 41 states, gained 3.2%.

Analyst consensus expects Lion’s Gate to post its first quarterly loss in 11 quarters when its reports fiscal first-quarter results on Aug. 9. The stock had gained 19% from a May low on Wednesday. But it is still below is 40-week moving average and within a six-month consolidation.

Cinemark’s outlook is a bit stronger, with consensus estimates for a 75 % earnings gain in its second quarter. Consensus views for the year, however, see earnings down 3%.

The China-India Camera

Article source: https://www.investors.com/research/ibd-industry-themes/netflix-rules-movies-group-but-watch-these-2-india-china-names/

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