3 Reasons AMC Stock Can Double Again in 2027

A funny thing has been happening as most investors laugh at AMC Entertainment (NYSE: AMC). The country's leading multiplex operator is getting the last laugh. Shares of AMC have now more than doubled this year. The stock's gain on Monday has pushed AMC up 104% in 2026.

It's a brutal chart if you zoom out. The stock is down 99.2% over the past five years, and off a brutal 99.6% from its peak in June 2021. You can litigate the past. AMC's management got itself into this mess. It has also started to dig itself out.

Looking back a few years from now, 2026 may be a fever dream. History may show that this was the last hurrah for the grand ole cinema before it fades to black. I don't see it that way. I'm thinking a sequel is in order. Let me go over some reasons AMC could double again in 2027.

Image source: Getty Images.

1. With great power comes great profitability

AMC has the only ugly five-year stock chart among surviving movie theater operators. In the same five years that AMC stock has surrendered nearly all of its value, smaller rival Cinemark (NYSE: CNK) has soared 87%. The even smaller rival Marcus (NYSE: MCS) has climbed 38%.

Exhibitors have been rebounding for years, even as AMC bloated its share count. It has been paring back its long-term debt since peaking in 2020, but the losses kept mounting -- until now. AMC reported an adjusted profit in the second quarter, something it has done in two of the three previous years in its springtime quarter.

It's not done this time. A strong theatrical slate this summer should deliver another adjusted profit for the third quarter that it will announce on Wednesday. Analysts see a profitable fourth quarter. This should be AMC's first year of positive adjusted earnings since 2018.

Neat things happen when you finally turn that corner. Cinemark and Marcus got there years earlier, and they both even reinstated their quarterly dividends. AMC is not there yet, but it's ready to build on its newfound black inkwell.

Analysts see adjusted earnings expanding fivefold in 2027. Just think of the debt it can reduce or shares it can repurchase. AMC has grown into a sustainable business, but skeptics are too busy looking at the meme-stock narrative that's fading in the rearview mirror.

2. Next year's theatrical slate is promising

There's no denying that AMC doesn't bounce back this year if movie studios weren't killing it. This will be the first time global box office receipts surpass $10 billion since 2019. It will be only the second year that more than five individual films top $1 billion in ticket sales.

The party isn't over. There will be plenty of blockbusters coming out in 2027. Here is just a sample of some of the obvious audience magnets coming out in the year ahead.

• Avengers: Secret Wars
• Frozen 3
• Shrek 5
• Spider-Man: Beyond the Spider-Verse
• Star Wars: Starfighter

Four of those franchises have already put out a $1 billion movie. The fifth has an excuse, as the last Shrek movie came out 16 years ago. It's going to be a bumper crop, and that's the known known. The real surprises will be the sleeper hits like low-budget horror movies and documentaries. The theater is back.

3. AMC has new tricks up its sleeve

You don't hear a lot of chatter about seeing AMC return to profitability this year after an eight-year drought. You might not even realize that it's on pace to shatter its 2019 annual revenue record this year.

Analysts see revenue growth slowing next year, but that undersells everything that AMC has done to set up its current turnaround. Engagement is strong due to its AMC Stubs loyalty memberships and the AMC Stubs A-List movie subscription plan. It's doing even better once you get inside.

The next time you step into your local AMC, look around. Take in the expanded food and beverage offerings. Check out the collectibles themed to currently playing movies. Consumer interests and tastes have changed, and the country's largest exhibitor has tech tools and monetization levers it never had before.

You don't have to join me as an AMC shareholder. If you're risk-averse, you should probably just stick to the screenings rather than the stock screens. However, you may want to think twice the next time you want to rub some popcorn salt in the wounds of long-term AMC investors. Don't be surprised if AMC doubles again in 2027.

Rick Munarriz has positions in AMC Entertainment. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.