Five Movie Stocks To Watch Ahead Of Hunger Games, Star Wars Releases

With the winter movie season warming up next month, fans are eagerly waiting for the next installments of several much loved franchises. This includes Spectre from the long enduring James Bond series and Creed, the next installment of the Rocky saga.

But the most awaited franchise releases of the year are The Hunger Games: Mockingjay - Part 2 and Star Wars: The Force Awakens. The first of these is scheduled for release on Nov 20 across the U.S., China and 85 more territories. Meanwhile, investors are showing great enthusiasm for exhibitor stocks. This was an immediate result of stellar earnings from Regal Entertainment Group (RGC - Snapshot Report) which came in yesterday.

Mockingjay - Part 2 

With Mockingjay - Part 2 releasing first, advance ticket sales began online on Oct 1. The franchise has been a significant one for the movie industry and has turned Jennifer Lawrence into a bankable star. Every single installment has posted impressive numbers, 408 million, $424 million and $337 million, respectively.

In fact, the second installment was the top grosser at the domestic box office, beating the third of the Iron Man films. The last of these was a little disappointing in terms of numbers, but market watchers believe that this is the one negative fallout of a smart decision by Lions Gate Entertainment Corp. (LGF - Analyst Report).

Lions Gate has divided the last of the films into two parts, emulating The Twilight Saga and Harry Potter series. Its marketing campaign for the film has also delivered impressive results. Mockingjay - Part 2 beat The Force Awakens on a poll conducted by Piedmont Media Research to become the most anticipated film for each of these surveys conducted.

The Force Awakens

But the new Star Wars movie is breaking records where it matters the most, at the box office. According to online retailer Fandango, The Force Awakens has broken previous day one sales records set by the first Hunger Games film by a wide margin. IMAX Corp. (IMAX - Analyst Report) said it collected $6.5 million from ticket sales on a single day. It also said one day ticket sales have never exceeded $1 million within 24 hours.  

The Walt Disney Company (DIS - Analyst Report) has utilized its unparalleled marketing ability to ensure that The Force Awakens is a success. The company has digitally released of all the earlier movies and launched associated merchandise. Additionally, it has incorporated the Star Wars universe into the latest version of its video game Disney Infinity 3.0.

Some market watchers believe that it may become the highest grossing film of all time. However, this will occur only if crosses Avatar’s global collection of nearly $2.8 billion. This may become difficult because it has failed to secure a release date in China for 2015. Additionally, the franchise is not as well known in that country, unlike The Hunger Games.

5 Exhibitor Stocks that Gained

This is set to be an unprecedented year at the movies and the motion picture business. Movie theaters are looking to ride on the success of major franchise releases.  Meanwhile, exhibitor stocks rallied yesterday following impressive third quarter earnings results from Regal Entertainment Group. The company posted an EPS of $0.18, beating the Zacks Consensus Estimate of $0.15.

Consequently, AMC Entertainment Holdings, Inc. (AMC - Snapshot Report), Cinemark Holdings, Inc. (CNK - Snapshot Report), Carmike Cinemas Inc. (CKEC - Snapshot Report) and The Marcus Corp. (MCS - Snapshot Report) gained 4.5%, 3.1%, 3% and 4%, respectively.

Several important chains have begun promotional deals following the announcement of advance ticket sales. For instance, the Regal Entertainment Group issued 1,000 limited edition ultimate tickets for Mockingjay - Part 2 priced at $100 which enables patrons to watch the film on each day when it is being screened.

Similarly, the first 500 patrons who purchase IMAX tickets of The Force Awakens from Regal Entertainment Group (RGC - Snapshot Report) on every Saturday starting Dec 19 to Jan 9 will get a special ticket which will feature unique art from the film.

Guests who purchase a ticket from theaters of AMC Entertainment Holdings, Inc. (AMC - Snapshot Report) on every Sunday from Dec 20 to Jan 10 will receive an exclusive Star Wars print.

Movie Stocks to Reap Dividends

Exhibitor stocks are set to be the ultimate winners from what has already become a record beating season. Of course, theaters are banking heavily on the success of these two franchises, billed as the biggest releases of the year. The enthusiasm shown on ticketing sites is expected to continue going forward, which bodes well for theater companies in the future.

Disclosure: Zacks.com contains statements and statistics that have ...

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