On Aug 13, 2014, Zacks Investment Research upgraded
Lions Gate Entertainment Corp.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Lions Gate has been witnessing rising earnings estimates in the
last 7 days on the back of strong first-quarter fiscal 2015
earnings. Moreover, this movie and television production company
has delivered positive earnings surprises in the trailing four
quarters with an average beat of 81.2%. The long-term expected
earnings growth rate for this stock is 17.5%.
The company reported adjusted quarterly earnings of 27 cents a
share, which rose over two-fold from 10 cents a share reported last
year and also surpassed the Zacks Consensus Estimate of 13 cents.
The improvement in adjusted earnings was backed by a fall in
interest expense coupled with a lower tax rate.
The Zacks Consensus Estimate for fiscal 2015 and 2016 increased
10.3% and 2.8% to $1.60 and $1.81 per share respectively.
Lions Gate is fast emerging as a leading player in the media
industry which boasts of stalwarts like The Walt Disney Co. (
) and CBS Corp. (
). With franchises like
The Hunger Games
the studio has tasted tremendous success. Lions Gate acquired
Summit Entertainment in 2012 giving it the rights to the hugely
popular young-adult fantasy themed
The studio is grabbing every possible opportunity to expand its
presence and soon might become a recognizable power within the
Other Stocks to Consider
Other home furnishings retailers with a favorable Zacks Rank
include Disney and Pearson plc (
). Both carry a Zacks Rank #2 (Buy).
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