What's Up With FedEx Stock Today?
Cinemark Holdings stock (NYSE: CNK), which currently trades at a little below $22 per share, is still not recovered fully to its pre-Covid level. Cinemark Holdings, which is an American movie theater chain, saw its stock trading over $32 in February 2020 just before the outbreak of the pandemic and is still almost 33% below that level. The stock has gained 76% since its March lows of 2020 compared to the S&P 500 which saw a 94% rise during this period. The rally in the stock over recent months was driven by the gradual lifting of the lockdown and successful vaccine rollout, leading to expectations of an increase in the number of theaters being functional. Also, stimulus measures are expected to increase consumer spending power leading to higher demand, which the company can benefit from as its capacity also gradually increases over the next few quarters. Going back to the pre-Covid level means that CNK will have to register an increase of over 50% from here. However, we do not believe that will actualize in the near term. The reason behind this is that although 98% of Cinemark theaters in the U.S. have reopened, they are operating at 50% or more capacity. In other major international markets only about 50% of Cinemark theaters are functioning due to recent spikes in Covid positive cases. We believe that strong performance in the U.S. market will drive another 15% uptick in the stock in the near term, making it a decent investment opportunity, but pre-Covid levels can be attained only once the company starts operating at near full capacity in the international markets, as well. Our conclusion is based on the detailed comparison of Cinemark Holdings stock performance during the current crisis with that during the 2008 recession in our dashboard analysis.