As the world strives to return to something resembling normalcy, people are seeking entertainment to escape from the reality of the pandemic. Many entertainment stocks collapsed during the Covid-19 outbreak, but low prices could provide opportunities for value-focused investors.
Profiting on this means picking the best entertainment companies and analyzing the data. If you’d like to celebrate your freedom and hopefully capitalize on the economic recovery, here are four entertainment stocks to consider:
- AMC Entertainment (NYSE:AMC)
- Las Vegas Sands (NYSE:LVS)
- Live Nation Entertainment (NYSE:LYV)
- Walt Disney (NYSE:DIS)
Making money in the markets should be fun, so check out these four entertainment stocks as potential additions to your portfolio.
AMC Entertainment (AMC)
Many movie theaters had to be shut down as the novel coronavirus spread throughout the world. However, the theaters will open back up at some point. That’s what makes AMC stock a potential moneymaker.
One survey found that 77% of people who watch digital movies will be ready to return to in-person movie theaters in a few months’ time. AMC stock has been under severe price pressure, but pent-up demand among moviegoers could provide a positive catalyst.
Research firm CFRA issued a “buy” rating on AMC stock along with an ambitious $8 price target. That suggests strong upside potential, so an early position in the shares could be the ticket to robust entertainment-sector returns.
Live Nation Entertainment (LYV)
You might never have owned LYV stock, but it’s definitely worth taking a look at. This company focuses on providing tickets and promotion for live-entertainment events. The share price was holding up nicely until the coronavirus crisis wreaked havoc on the entertainment industry.
Shelter-in-place mandates have caused people to go a little stir-crazy. As restrictions ease and people feel more comfortable venturing out of their homes, their fear of participating in live events should eventually subside.
That’s where Live Nation Entertainment comes in, as the company profits from entertainment events at venues ranging from huge arenas to small clubs. CFRA placed a very reasonable $65 price target along with a “buy” rating on LYV stock, so it might just be the ticket to outsized returns.
Las Vegas Sands (LVS)
Casinos are a popular albeit expensive form of entertainment. As the name of the company implies, a reopening of the casino industry, particularly in Las Vegas, will be crucial to the recovery in LVS stock.
Thankfully for LVS shareholders, many Las Vegas casinos reopened on June 4. But don’t expect Las Vegas Sands’ casinos to operate exactly like they did before the pandemic. Social distancing protocols and strict hygiene standards will have to be part of the gambling experience now.
Still, there’s hope on the horizon now for LVS shareholders. Credit Suisse analyst Ben Combes upgraded his rating on the stock from “neutral” to “outperform,” so maybe it’s time to consider upgrading your portfolio with a position in LVS stock.
Walt Disney (DIS)
Would a list of live-entertainment investments really be complete without DIS stock? Cooped-up kids (and adults) around the world are undoubtedly dreaming of enjoying their freedom at a Walt Disney theme park.
Fortunately for those kids and for DIS stockholders, a phased reopening in Disney’s theme parks is already in progress. However, Disney has canceled a number of special events, such as Grad Bash. Therefore, prospective investors can be enthusiastic but also need to maintain a realistic outlook.
Because the company also generates revenue from its streaming service Disney+, DIS stock isn’t a pure play in live entertainment. That being said, some diversification could be considered a good thing when trying to invest in these uncertain times.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
