CINEMARK HOLDINGS INC (NYSE:CNK) is a candidate for high growth investors. Here's why.

Our stock screener has identified CINEMARK HOLDINGS INC (NYSE:CNK) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:CNK.

What is the technical picture of NYSE:CNK telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, CNK scores 10 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CNK is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that CNK is one of the better performing stocks in the market, outperforming 93% of all stocks. We also observe that the gains produced by CNK over the past year are nicely spread over this period.
• CNK is one of the better performing stocks in the Entertainment industry, it outperforms 90% of 72 stocks in the same industry.
• CNK is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so CNK is leading the market.
• In the last month CNK has a been trading in the 26.79 - 31.09 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.
• Volume is considerably higher in the last couple of days.

For an up to date full technical analysis you can check the technical report of CNK

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:CNK exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, CNK also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 29.24, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Why NYSE:CNK may be interesting for high growth investors.

• The EPS of CINEMARK HOLDINGS INC has exhibited growth from one quarter to another (Q2Q), with a 95.08% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• CINEMARK HOLDINGS INC has seen a 46.39% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• The recent financial report of CINEMARK HOLDINGS INC demonstrates a 95.08% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• The free cash flow (FCF) of CINEMARK HOLDINGS INC has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• CINEMARK HOLDINGS INC demonstrates a strong Return on Equity(ROE) of 42.23%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. CINEMARK HOLDINGS INC shows promising potential for continued success.
• The ownership composition of CINEMARK HOLDINGS INC reflects a balanced investor ecosystem, with institutional shareholders owning 5.78%. This indicates a broader market participation and potential for increased trading liquidity.
• CINEMARK HOLDINGS INC has exceeded EPS estimates 3 times in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• CINEMARK HOLDINGS INC has achieved an impressive Relative Strength (RS) rating of 93.97, showcasing its ability to outperform the broader market. This strong performance positions CINEMARK HOLDINGS INC as an attractive stock for potential price appreciation.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.