The Bullish Case for Cinemark Holdings (CNK)

NYSE: CNK | Cinemark Holdings Inc. News, Ratings, and Charts

CNK – Cinemark Holdings (CNK) is approaching a key resistance level. If the stock surpasses this level, a breakout could occur. Read more to learn how to take advantage of this trade.

Cinemark Holdings (CNK) is approaching a key resistance level.  If the level is surpassed a breakout could occur.

CNK is the third- largest motion picture exhibitor in the United States. The company operates 4,568 screens in 37 states and 12 Latin American countries.

The company has been struggling due to limited attendance amid the coronavirus pandemic. But it has plenty of liquidity to hold it over until the vaccine distribution takes effect and moviegoers start coming back. Last week B. Riley raised its price target for the stock to $28, which is over 50% higher than its current price.

CNK had $826 million in cash as of the end of the last quarter, compared with $3.6 billion in long-term debt and only $ million in short-term debt. While sales are estimated to be down 88.2% (year over year) in the fourth quarter, they are expected to rise 174.5% for 2021.

It has a very low 8.29 trailing P/E and 1.63 Price to Sales ratio. The company has shown some recent weakness, but is up over 15% for the past month. This has led to a “Neutral” rating in our POWR Ratings system.

Take a look at the 1-year chart of CNK below with my added notations:

 Chart of CNK provided by TradingView

Over the past two months, CNK had formed a key level of resistance at the $18 (green) mark. The stock broke through that level last week on route to the next level of resistance at $20 (red). Now that CNK is pulling back, the old $18 resistance may act as new $18 support in preparation for a run higher.

A long trade could be entered if CNK breaks the $20 resistance level.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT


CNK shares fell $0.58 (-3.12%) in premarket trading Friday. Year-to-date, CNK has gained 3.45%, versus a 2.15% rise in the benchmark S&P 500 index during the same period.

About the Author: christian

Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CNKGet RatingGet RatingGet Rating

Most Popular Stories on

Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Auto Stocks to Consider Over TSLA in April

Tesla (TSLA) reported a decline in deliveries in the first quarter, and Wall Street expects the company to deliver fewer vehicles than last year. Furthermore, rising competition, slowing EV sales, and stretched valuation make TSLA unattractive from an investment standpoint. Considering these factors, investors could consider buying fundamentally strong auto stocks Blue Bird (BLBD), Rolls-Royce Holdings (RYCEY), and Stellantis (STLA) over Tesla (TSLA). Read more...

3 Top-Rated Tech Stock Buys for Value in April

The technology sector is undergoing a notable surge, propelled by increasing digitalization endeavors among businesses and governmental support for technological progress. So, fundamentally sound tech stocks Box Inc. (BOX), Teradata (TDC), and Materialise (MTLS), which seem pretty undervalued, might be ideal buys this month. Continue reading...

Top Software Stocks at the Forefront of Market Gains

The software industry's prospects appear bright due to increasing investments in digital transformation, high demand for advanced software services from various sectors, and the integration of emerging technologies such as generative AI. Therefore, investors could consider buying quality software stocks Autodesk (ADSK), DocuSign (DOCU), and Pegasystems (PEGA) for solid gains. Read more...

Does the Stock Market Have Indigestion?

The easy gains have already rolled in for the S&P 500 (SPY) to new heights. However, signs point to stocks entering a stage of “digestion”. What does that mean? And what does it tell us about investing in stocks the rest of the year? Steve Reitmeister shares his time views in this new market commentary including a preview of this top stocks to outperform. Get the full story below...

Read More Stories

More Cinemark Holdings Inc. (CNK) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CNK News