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AMC Networks Inc (AMCX) reported Q1 2024 revenue decline of 16.9%, missing analyst estimates. Streaming subscribers increased but stock price fell.

AMC Networks Stock Slips: What&#39;s Behind the Sharp Revenue and EPS Decline?

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Cinemark Holdings (CNK) reported Q1 2024 sales of $579.20M, beating analyst consensus of $560.38M. EPS of $0.19 beat consensus loss of $(0.20). Admissions and concession revenue decreased, but average ticket price and concession revenue per patron held steady. The company has plans to open new theaters and screens over the next two years. It generated $70.7M of adjusted EBITDA and held $788.6M in cash as of March 31, 2024. Despite a 3.81% premarket decrease, CNK stock has gained 4% in the last 12 months.

Are Cinema&#39;s Finally Bouncing Back? Cinemark&#39;s Q1 Profit Paints A Bright Picture

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Paramount Global (PARA) &amp; Skydance Media are moving towards a $5B merger, led by David Ellison&#39;s Skydance &amp; private equity firms. Ellison to be CEO, ex-CEO to leave. Alternative options explored. Apollo &amp; Sony in talks for buyout. PARA stock up 9.9% to $12.04.

Paramount-Skydance Merger Talks Heat Up

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Peijia Medical Ltd

AMC Networks Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMCX#NASDAQ">AMCX</a>)&nbsp;reported a fiscal first-quarter 2024 revenue decline of 16.9% year over year to $596.46 million, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/g38756320/amc-networks-inc-reports-first-quarter-2024-results" rel="noreferrer noopener">analyst consensus estimate of $602.60 million</a>.
The American entertainment company's adjusted EPS of $1.16 fell 55.7% year over year and missed the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $1.67</a>.&nbsp;The stock slid after the print.
Domestic Operations:&nbsp;Affiliate revenue decreased 14% due to&nbsp;basic&nbsp;subscriber declines. Advertising revenues decreased 13% Y/Y to $140 million due to anticipated linear ratings declines and a challenging ad market.&nbsp;
Content licensing revenues declined 40% to $62 million as the corresponding 2023 period included deliveries of&nbsp;AMC Studios-produced series&nbsp;Silo.
Despite these setbacks, AMC Networks reported that streaming subscribers increased by 2% to 11.5 million across its offerings, including AMC+, which added "<a target="_blank" href="https://www.benzinga.com/general/entertainment/24/03/37472003/the-walking-dead-to-the-rescue-again-could-zombie-stock-amc-networks-come-to-life-with-new-" rel="noreferrer noopener">The Walking Dead: The Ones Who Live</a>" starring Andrew Lincoln and Danai Gurira.&nbsp;This&nbsp;is compared&nbsp;to 11.2 million subscribers as of March 31, 2023.
The company returned to streaming subscriber growth in the third quarter of 2023 after two quarters of declines, the Hollywood Reporter&nbsp;<a target="_blank" href="https://www.hollywoodreporter.com/business/business-news/amc-networks-q1-earnings-advertising-streaming-walking-dead-1235895528/" rel="noreferrer noopener">reports</a>.
Streaming revenues of $145 million increased 3%, primarily driven by year-over-year streaming subscriber growth and price increases.
The consolidated adjusted operating income decreased 30.9% to $149.12 million, with free cash flow at $144.15 million.
The company, helmed by CEO Kristin Dolan, is tilting toward data-led audience targeting for ad buying as marketing dollars&nbsp;continue to&nbsp;shift from linear TV networks to streaming platforms.
AMC Networks stock lost close to 8% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;Invesco Leisure&nbsp;And Entertainment ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEJ#NYSE">PEJ</a>) and&nbsp;Schwab Strategic&nbsp;Trust Schwab Crypto Thematic ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STCE#NYSE">STCE</a>).
Price Action:&nbsp;AMCX shares are down 4.08% at $13.17 premarket at&nbsp;the last check Friday.

AMC Networks Stock Slips: What's Behind the Sharp Revenue and EPS Decline?

Cinemark Holdings&nbsp;Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNK#NYSE">CNK</a>)&nbsp;reported a fiscal first-quarter 2024 sales decline of 5.2% year-on-year to $579.20 million, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b38576394/cinemark-holdings-inc-reports-first-quarter-2024-results" rel="noreferrer noopener">analyst&nbsp;consensus of $560.38 million</a>. EPS of $0.19 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst&nbsp;consensus loss of $(0.20)</a>.
Admissions revenue decreased 6.8% to $289.8 million, and concession revenue declined 4.9% to $224.2 million, driven by a 7.5% decrease in attendance to 39.7 million patrons.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/general/entertainment/24/03/37421433/netflixs-2024-gains-is-cinemas-loss-amc-shares-slump-despite-box-office-boost-from-taylor-s" rel="noreferrer noopener">Netflix's&nbsp;2024 Gains Are&nbsp;Cinema's&nbsp;Loss: AMC Shares Slump Despite Box Office Boost From Taylor Swift, Beyoncé</a>
The worldwide average ticket price was $7.30, and concession revenue per patron was $5.65.
As of March 31, 2024, the&nbsp;company's&nbsp;aggregate screen count was 5,708, and the company had commitments to open three new theatres and 33 screens over the next two years.
The company generated $70.7 million of adjusted EBITDA in the quarter versus $86.2 million a year ago.&nbsp;
Cinemark held $788.6 million in cash and equivalents as of March 31, 2024.
"2024 North American industry box office has kicked off better than expected, declining only modestly versus 2023 despite last&nbsp;year's&nbsp;strike-induced headwinds,"&nbsp;stated&nbsp;Sean Gamble,&nbsp;Cinemark's&nbsp;President and CEO.
Cinema operators are doling out deals and discounts to entice moviegoers as threats loom from streaming content.
Cinemark Holdings stock gained close to 4% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>) and&nbsp;Invesco Leisure And Entertainment ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEJ#NYSE">PEJ</a>).
Price Action: CNK shares are trading higher by 0.30% at $17.48 at the last check Friday.
Photo via Wikimedia Commons

Are Cinema's Finally Bouncing Back? Cinemark's Q1 Profit Paints A Bright Picture

Paramount Global&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) and Skydance Media are advancing towards a merger, with discussions to purchase out controlling shareholder Shari Redstone underway, CNBC&nbsp;<a target="_blank" href="https://www.cnbc.com/2024/04/25/paramount-skydance-inch-closer-to-a-merger-agreement.html" rel="noreferrer noopener">cites</a>&nbsp;sources.
Paramount Global&#8217;s special committee and David Ellison&#8217;s Skydance Media, supported by private equity firms KKR and RedBird Capital Partners, are honing the valuation of Skydance&#8217;s assets for the merger and determining the equity to&nbsp;be added&nbsp;for recapitalization.
The parties are nearing an agreement on valuing Skydance at about $5 billion to merge with Paramount Global, CNBC writes.&nbsp;
Ellison and the supporting private equity firms intend to raise approximately $4.5 billion to $5 billion in new equity. Around $2 billion would go towards paying Redstone, with a significant amount also allocated for debt reduction.
The buyers are aiming to finalize the deal in May. However, delays in data provision by Paramount Global during due diligence have slightly postponed the timeline, according to three sources, CNBC notes.
The exclusivity period for merger discussions ends on May 3, but the Skydance consortium seeks a two-week extension.
Ellison is slated to become the CEO of the merged entity, Paramount Global, and former NBCUniversal CEO Jeff Shell will likely be appointed president. Current Paramount CEO Bob Bakish would leave the company.
The deal had&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38219573/paramount-shareholders-express-concerns-over-potential-skydance-media-merger-any-merger-talks-th" rel="noreferrer noopener">sparked investor concerns</a>&nbsp;about the deal&#8217;s fairness and the exploration of alternative options. Not all shareholders&nbsp;are in favor of&nbsp;the potential $4 billion to $5 billion stock deal. Four Paramount directors departed amid Skydance merger discussions.
<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38335444/why-paramount-global-shares-are-gaining-today" rel="noreferrer noopener">In a separate development</a>, private equity firm&nbsp;Apollo Global Management, Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>) and&nbsp;Sony Group Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) have engaged in preliminary talks about a potential deal to buy out all Paramount Global shareholders at a premium.&nbsp;
Apollo had previously offered a $26 billion bid for the company and a $11 billion proposal for Paramount&#8217;s film studio.&nbsp;
PARA stock lost 44% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P 500 Equal Weight Communication Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>) and&nbsp;Invesco Leisure And Entertainment ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEJ#NYSE">PEJ</a>).
Price Action: PARA shares were down 1.72% to $11.87 at the last check on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image by viewimage via Shutterstock

The U.S. economy added 303,000 jobs last month. That data breezed past expectations for 205,000 job gains, according to FactSet consensus estimates, as quoted on CNBC. The unemployment rate in the United States dipped to 3.8% in March 2024 from the previous month&#39;s two-year high of 3.9% and surprising market expectations, which had forecasted the rate to remain unchanged.
Additionally, the labor force participation rate increased to 62.7% from a near one-year low of 62.5% in the preceding periods, and the employment-population ratio climbed to 60.3% from 60.1%. Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the strong March jobs data.
<h3>Sectors in Focus</h3>
Healthcare
Employment in the healthcare industry increased by 72,000 in jobs, above the average monthly gain of 60,000 over the prior 12 months. In March, job growth continued in ambulatory health care services (+28,000), hospitals (+27,000), and nursing and residential care facilities (+18,000).
Health Care Select Sector SPDR ETF (ARCA:XLV) can be played to tap the moderate momentum. HCA Healthcare (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hca#NYSE">HCA</a>), which has a Zacks Rank #2 (Buy) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
Construction
In March, employment in construction (+39,000) was in line with the average monthly gain over the prior 12 months (+19,000). Over the month, employment increased in nonresidential specialty trade contractors (+16,000).
Investors can keep a watch on the price movement of Invesco Dynamic Building &amp; Construction ETF (ARCA:PKB). As far as the stock is concerned, Zacks Rank #2 (Buy) Dycom Industries (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dy#NYSE">DY</a>) can be played. It is a leading provider of specialty contracting services throughout the United States.
Leisure
Employment in leisure and hospitality rose by 49,000. The industry has returned to its pre-pandemic February 2020 level. Over the past one year, job growth in the industry had averaged 37,000 per month.
The data makes Invesco Dynamic Leisure and Entertainment ETF (ARCA:PEJ) a timely investment. The Zacks Rank #2 Brinker International (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eat#NYSE">EAT</a>), owns, operates, develops and franchises various restaurants under Chili&#39;s Grill &amp; Bar (Chili&#39;s) and Maggiano&#39;s Little Italy (Maggiano&#39;s) brands.
<a href="https://www.zacks.com/stock/news/2252356/3-sector-etfs-stocks-to-bet-on-march-jobs-data?cid=CS-BENZ-FT-etf_news_and_commentary-2252356">To read this article on Zacks.com click here.</a>

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3 Sector ETFs & Stocks to Bet on March Jobs Data

Apollo Global Management Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>) has placed an $11 billion bid&nbsp;<a target="_blank" href="https://www.benzinga.com/m-a/24/02/37345113/whats-going-on-with-warner-bros-discovery-and-paramount-global-stocks-tuesday" rel="noreferrer noopener">to purchase the</a>&nbsp;film and TV studio of&nbsp;Paramount Global&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARAA#NASDAQ">PARAA</a>), outpacing the company&#8217;s entire market value of approximately $7.7 billion.&nbsp;
This proposal is part of a broader review by Paramount&#8217;s independent committee.&nbsp;
It is also considering&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/01/36787712/hollywood-power-play-david-ellison-aims-to-transform-paramount-global-under-skydance-leadership" rel="noreferrer noopener">a merger offer from</a>&nbsp;Skydance Media, aiming to integrate the entirety of Paramount, including its holdings like CBS and Nickelodeon, the Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/business/media/apollo-offers-11-billion-for-paramounts-hollywood-studio-24206eab" rel="noreferrer noopener">reports</a>.&nbsp;
Also Read:&nbsp;<a target="_blank" href="http://India's Richest Man Buys Paramount's Entire Stake In His Broadcasting Unit Viacom18 For $570M" rel="noreferrer noopener">India&#8217;s Richest Man Buys Paramount&#8217;s Entire Stake In His Broadcasting Unit Viacom18 For $570M</a>
Paramount&#8217;s studio, known for hits like &#8220;Top Gun: Maverick&#8221; and &#8220;A Quiet Place,&#8221; has attracted interest from various buyers over the years, including&nbsp;Netflix Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>).
However, Paramount Global&#8217;s primary stakeholder, Shari Redstone, and other board members have previously opposed selling the studio. Redstone, who is open to selling the entire company, faces a crucial decision regarding the potential division of Paramount to facilitate the studio&#8217;s sale.&nbsp;
The interest in Paramount&#8217;s studio stems from its extensive content library and the growing demand for new programming in the streaming sector, despite the decline of Paramount&#8217;s TV networks due to the shrinking cable business.
Simultaneously, Skydance Media, led by David Ellison, has proposed acquiring Paramount&#8217;s parent company, National Amusements, and merging with Paramount.&nbsp;
Ellison, supported by his father, Larry Ellison, co-founder of&nbsp;Oracle Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), is expected to finance the merger.&nbsp;
As Paramount&#8217;s directors review these offers, their challenge lies in ensuring any deal benefits all shareholders, not just National Amusements.
Amidst these developments, Paramount has explored other strategic options, including merger talks with&nbsp;Warner Bros. Discovery Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) and a potential streaming partnership or joint venture with&nbsp;Comcast Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>).&nbsp;
The company&#8217;s stock witnessed a significant rise following the announcement of Apollo&#8217;s bid, marking a sharp contrast to its prior performance this year.&nbsp;
Shari Redstone, who merged Viacom and CBS in 2019, creating Paramount Global, is at a pivotal juncture, considering the future direction of the media conglomerate her father, Sumner Redstone, built.
Previous reports indicated Paramount Global&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/01/36721298/paramount-global-to-reduce-workforce-in-february-faces-acquisition-interest-and-internal-restructuri" rel="noreferrer noopener">downsizing plans across</a>&nbsp;divisions in February, less than initially speculated 800.&nbsp;
The streaming giants, including&nbsp;Walt Disney Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) and&nbsp;Netflix, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), battled subscriber loss amidst price hikes and cost-of-living pressures.&nbsp;
Warren Buffet&#8217;s&nbsp;Berkshire Hathaway significantly decreased its position in Paramount&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/02/37161084/whats-going-on-with-paramount-global-stock" rel="noreferrer noopener">during the period</a>.
The stock lost over 41% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P 500 Equal Weight Communication Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>) and&nbsp;Invesco Leisure And Entertainment ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEJ#NYSE">PEJ</a>).
Price Actions:&nbsp;PARAA shares are up 2.42% at $24.54 premarket on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Paramount in the Spotlight, Apollo Global Management Bids Big For Film and TV Studio

Benchmark&nbsp;analyst Matthew Harrigan reiterated a Buy rating on&nbsp;Warner Bros. Discovery, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) with a&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/WBD/analyst-ratings" rel="noreferrer noopener">price target of $20</a>.
The re-rating follows this weekend's robust $81.5 million Dune: Part Two U.S. opening.&nbsp;
The market is averse to recognizing an ongoing turnaround at the Warner Bros. studio and a fair likelihood that DTC can generate sustainable $1 billion+ in EBITDA post-2025, Harrigan stated.
Assuming creative and strategic execution, Warner Bros. Discovery will benefit enormously from the studio/DTC/network triad with evergreen IP and an unparalleled film and TV library, somewhat moderating the linear rating and advertising decay rates as consumption gravitates toward streaming.&nbsp;
As per the analyst, the Harry Potter and Dune series will also benefit Maxm.&nbsp;
A re-architecture of the TV ecosystem toward hybrid pricing and continued global licensing should buttress the value of the legacy Discovery Networks non-fiction and lifestyle programming and sports with new original scripted shows as the most challenging element.&nbsp;&nbsp;
Dune: Part Two opened to a strong $81.5 million domestically, the best opening since last October for Taylor Swift's The Eras Tour film at $93 million, although it was likely to exceed the studio's conservative $65 million projection, Harrigan noted.&nbsp;
The global tally was $178 million, although it has yet to open in sci-fi receptive China and Japan.&nbsp;
It is a positive for Warner Bros., although the film admittedly cost $190 million to produce and ~$100 million to market, with economics shared with Legendary Pictures, as per the analyst.&nbsp;
The 2021 Dune: Part One release garnered $402 million globally, although this was depressed by Warner Bros.' pandemic hybrid approach with a simultaneous streaming debut with a 2x+ result plausible for the current release, Harrigan said.&nbsp;
Significantly, the spinoff series Dune: Prophecy will be on Max later in 2024, with the prequel exploring the origins of Dune.&nbsp;
According to Harrigan, Studio positives include the relaunch of the studio animation business under DreamWorks veteran Bill Damaschke, the new partnership with Tom Cruise, the start of filming on James Gunn's Superman movie under new DC leadership, and the rapprochement with J.K. Rowling supporting the new Harry Potter content for Max as early as 2026.&nbsp;&nbsp;
Harrigan projects first-quarter revenue and EBITDA of $10.35 billion and $2.14 billion, respectively.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/04132235/newplot-12.png" alt="" class="wp-image-238146" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/04132235/newplot-12.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/04132235/newplot-12-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Investors can gain exposure to Warner Bros via&nbsp;Invesco Leisure And Entertainment ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEJ#NYSE">PEJ</a>) and&nbsp;Invesco S&amp;P 500 Equal Weight Communication Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>).
Price Actions: WBD is trading lower by 5.82% at $8.17 on the last check Monday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/m-a/24/02/37345113/whats-going-on-with-warner-bros-discovery-and-paramount-global-stocks-tuesday" rel="noreferrer noopener">Paramount Global Explores Sale Options Amid Bids, While Warner Bros. Discovery Faces Stock Decline</a>

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Warner Bros. Discovery Poised for Turnaround With Strong IP and Streaming Strategy, Analyst Says

Thursday&#8217;s headline number in jobs growth — 199,000 in November, beating expectations of around 180,000 — appeared to take the shine off <a href="https://www.benzinga.com/economics/macro-economic-events/23/12/36152500/november-jobs-report-outruns-expectations-unemployment-drops-jeopardizing-rate-cu">hopes for a raft of interest rate cuts next year</a>. 
But the big number may have been flattered by thousands of workers returning to the labor force following recent strikes.
Equity indices were flat at the open on Wall Street, while the dollar climbed — an indication that some rate cut bets were being taken off the table. A stronger labor market would appear to undermine concerns of the fragility of the U.S. economy.
A deeper dive into the numbers, however, suggests there are still areas of stress, particularly surrounding the main cog of economic activity — the consumer.
But first, let&#8217;s look at the big number, and why it so significantly beat the prior month&#8217;s 150,000 new jobs and surpassed the 180,000 average forecast by analysts.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/23/12/36152500/november-jobs-report-outruns-expectations-unemployment-drops-jeopardizing-rate-cu">November Jobs Report Outruns Expectations, Unemployment Drops</a>
<h2 class="wp-block-heading">Strikers Returning To The Workforce</h2>
Employment in the manufacturing sector of Thursday&#8217;s report, compiled by the U.S. Bureau Of Labor Statistics (BLS), rose by a net 28,000. 
But this also reflected the return of 30,000 workers in the motor vehicles and parts sector from a strike by United Auto Workers members. The headline jobs number for October was <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/11/35594693/much-needed-cooling-off-or-risk-on-rally-ahead-yields-tumble-bonds-gain-after-octob">negatively affected by the loss of the UAW members</a>.
The iShares U.S. Industrials ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYJ#BATS">IYJ</a>), which tracks companies in the US manufacturing sector, was up 0.3% in early trade.
A further 17,000 jobs added in the information sector of the BLS survey was primarily down to the return to work of striking Hollywood screenwriters and actors.
Thus, the headline jobs growth number of 199,000 was flattered by nearly 50,000 workers who were only temporarily missing from the workforce.
&#8220;The equity market, which has been consolidating gains over the last few sessions, will need to decipher whether the stronger-than-expected print is due primarily to the return of striking workers, or more indicative of a seemingly entrenched resilient economic foundation that has consistently surprised to the upside,&#8221; said Quincy Krosby, economist for LPL Financial.
<h2 class="wp-block-heading">Trouble In Stores</h2>
Perhaps the most troubling news came from the retail sector, with 38,000 jobs lost — half of them from department stores. The BLS has now reported net job losses in the retail sector in four out of the last five employment reports.
&#8220;The reported 38K drop in retail jobs in November — the worst since November last year — might be a sign that retailers are already nervous,&#8221; said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Retail sales have seen only tepid growth over the last six months and, in October, sales fell by 0.1%.
The SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>), which tracks retail stocks on the S&amp;P 500, was up 0.6% in early trade.
<h2 class="wp-block-heading">A Round-Up Of The Rest</h2>
<ul>
<li>Health care added the most jobs in November, with a rise of 77,000, beating the average monthly gain of 54,000 over the prior 12 months.</li>
<li>The Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) was up 0.1% in early trade.</li>
<li>Employment in leisure and hospitality rose by 40,000, falling from its 12-month average of +51,000, with almost all the jobs created in restaurants and bars.</li>
<li>The Invesco Dynamic Leisure and Entertainment ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEJ#NYSE">PEJ</a>) was up 1.8%</li>
</ul>
Now Read: <a href="https://www.benzinga.com/news/23/12/36154317/chances-are-youre-wrong-on-bidenomics-survey-finds-wildly-concerning-views-about-wealth-income-and-j">Chances Are You&#8217;re Wrong On Bidenomics</a>

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UAW's Return To Work Pushes US Jobs Growth Higher, But Dark Clouds Hover Over Retail Sector

One of the biggest trends to watch in 2021 continues to be the reopening of the economy as it relates to the increased rate of COVID-19 vaccinations and the lifting of restrictions in areas across the U.S. and globally.
Restaurants Could Benefit: One industry that saw pressure during the pandemic and could benefit from the reopening trend are&nbsp;restaurants.
Several industry leaders have <a href="https://twitter.com/jonathanmaze/status/1404896377566601216">pointed out</a>&nbsp;restaurant spending has surpassed grocery spending for the first time in a while.
Restaurant spending has also <a href="https://en.as.com/en/2021/06/16/latest_news/1623847509_444848.html">passed </a>pre-pandemic levels in May, suggesting that consumers are opting to dine out once again.
Some are even calling for additional stimulus checks that could boost restaurant spending even further in the latter half of 2021.
Here are several ETFs offering exposure to restaurant stocks&nbsp;investors could consider.
AdvisorShares Restaurant ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eatz#NYSE">EATZ</a>): This&nbsp;newly launched ETF <a href="https://advisorshares.com/etfs/eatz/">focuses </a>100%&nbsp;on restaurants.&nbsp;Launched&nbsp;April 20, it&nbsp;has a tagline of &ldquo;Put Your Money Where Your Mouth Is.&rdquo;&nbsp;
The ETF is split fairly evenly with 35% of assets in large-cap stocks, 34% in mid-cap stocks and 31% in small-cap stocks. Top holdings in the fund include Chuy&rsquo;s Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/chuy#NASDAQ">CHUY</a>) at 5.6%, Ruth&rsquo;s Hospitality Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ruth#NASDAQ">RUTH</a>) at 5.3%, Jack in the Box Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jack#NASDAQ">JACK</a>) at 5.0%, RCI Hospitality Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rick#NASDAQ">RICK</a>) at 4.9% and Texas Roadhouse Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/txrh#NASDAQ">TXRH</a>) at 4.9%. The ETF is the only pure-play for the sector currently on the market.
Related Link:<a href="https://www.benzinga.com/general/restaurants/21/06/21473928/is-wendys-the-next-reddit-rally-stock"> Is Wendy&#39;s The Next Reddit Rally Stock?</a>
Invesco Dynamic Leisure and Entertainment ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>):&nbsp;This ETF is another option for investors looking for restaurant exposure.
The ETF counts some of the largest restaurant stocks as<a href="https://www.invesco.com/us/financial-products/etfs/holdings?audienceType=Institutional&amp;ticker=PEJ"> top holdings</a> with Yum China Holdings (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yumc#NYSE">YUMC</a>), McDonald&rsquo;s Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mcd#NYSE">MCD</a>), Starbucks Corporation&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbux#NASDAQ">SBUX</a>) and Yum! Brands Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yum#NYSE">YUM</a>) all represented around 5% each.
Other restaurants held in the ETF include Texas Roadhouse, Cheesecake Factory Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cake#NASDAQ">CAKE</a>), Cracker Barrel Old Country Store (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cbrl#NASDAQ">CBRL</a>) and Bloomin&rsquo; Brands Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/blmn#NASDAQ">BLMN</a>).
The ETF also has around 10% of its holdings split across Sysco Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/syy#NYSE">SYY</a>), US Foods Holdings Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/usfd#NASDAQ">USFD</a>) and Performance Food Group&nbsp;Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfgc#NYSE">PFGC</a>), which are among the largest suppliers to restaurants.
Invesco S&amp;P SmallCap Consumer Discretionary ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pscd#NASDAQ">PSCD</a>): A smaller way for investors to get exposure to the restaurant sector is the Invesco S&amp;P SmallCap Consumer Discretionary ETF.
The ETF <a href="https://www.invesco.com/us/financial-products/etfs/holdings?audienceType=Investor&amp;ticker=PSCD">holds </a>small positions in many small-cap restaurants. Holdings include Shake Shack Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shak#NYSE">SHAK</a>), Brinker International, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eat#NYSE">EAT</a>), Cheesecake Factory, Bloomin&rsquo; Brands, Dave &amp; Buster&rsquo;s Entertainment Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/play#NASDAQ">PLAY</a>), Dine Brands Global Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/din#NYSE">DIN</a>), BJ&#39;s Restaurants, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bjri#NASDAQ">BJRI</a>), Red Robin Gourmet Burgers, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rrgb#NASDAQ">RRGB</a>), El Pollo LoCo Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/loco#NASDAQ">LOCO</a>) and Fiesta Restaurant Group Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/frgi#NASDAQ">FRGI</a>).
The top holding in the ETF is GameStop Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gme#NYSE">GME</a>) at 7.9% of assets and the restaurants are all 2.2% of assets or below.
The ETF does offer nice exposure to smaller restaurant companies that could benefit from the reopening of the economy.
(Photo: Kevin Turcios via <a href="https://unsplash.com/">Unsplash)</a>

Specialty ETFs

Restaurants

Small Cap

BJRI

BLMN

CAKE

CBRL

CHUY

EATZ

FRGI

JACK

LOCO

PFGC

PLAY

PSCD

RICK

RRGB

RUTH

SBUX

SHAK

TXRH

USFD

YUMC

3 ETFS To Watch With Increased Restaurant Spending

Shares of AMC Entertainment were continuing to surge on Wednesday, and the rally&nbsp;could boost the valuation of three ETFs that count AMC among their largest holdings.
Three ETFs have weighting of AMC shares at 2% or higher, according to <a href="https://etfdb.com/stock/AMC/">ETFDB</a>. AMC comprises less than 1% of assets in all other ETFs that hold the movie theater chain&#39;s stock.&nbsp;
The ETF&nbsp;weightings could change along with the share price of AMC and also change during quarterly rebalancing where applicable. Here is a look at three ETFs that have the largest weighting in shares of AMC Entertainment Holdings (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amc#NYSE">AMC</a>).
See Also: <a href="https://www.benzinga.com/money/buy-amc-stock/">How To Buy AMC Stock</a>
SoFi Social 50 ETF: The SoFi&nbsp;Social 50 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sfyf#NYSE">SFYF</a>) <a href="https://www.sofi.com/invest/etfs/sfyf/">tracks </a>the top 50&nbsp;U.S. stocks held by investors on SoFi Technologies (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sofi#NASDAQ">SOFI</a>).
AMC shares represented 11.8% of holdings as of Tuesday, a figure that is set to rise with Wednesday&rsquo;s price surge. Other large holdings in the ETF include Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) and GameStop Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gme#NYSE">GME</a>).
The SoFi Social 50 ETF saw shares halted on Wednesday due to the increased valuation and exposure to AMC, a move that is<a href="https://twitter.com/maybebullish/status/1400142941000192004">&nbsp;uncommon</a> for ETFs. Shares of the ETF are up 15% on Wednesday.
Invesco Dynamic Leisure &amp; Entertainment: This&nbsp;ETF, which&nbsp;<a href="https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Institutional&amp;ticker=PEJ">offers </a>exposure to 30 of the largest U.S. leisure and entertainment companies, is up 11% Wednesday thanks to the increase in AMC shares.
The Invesco Dynamic Leisure &amp; Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>) counts AMC as the No. 1&nbsp;holding at 10.2% of assets as of June 1. The next largest holding is Booking Holdings (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bkng#NASDAQ">BKNG</a>) at 5%.
Related Link:<a href="https://www.benzinga.com/news/21/06/21389413/own-amc-shares-get-rewarded-with-a-free-popcorn-under-new-investor-connect-program"> Own AMC Shares, Get Rewarded With A Free Popcorn Under New Investor Connect Program</a>
First Trust Mid Cap Growth: The First Trust Mid Cap Growth AlphaDEX Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fny#NYSE">FNY</a>) <a href="https://www.ftportfolios.com/retail/etf/etfsummary.aspx?Ticker=FNY">holds </a>225 stocks. AMC Entertainment is the largest holding at 2.3% of assets as of June 1. The holding in AMC is significant for the ETF, as no other position is worth more than 1% of assets.
The FNY ETF seeks to outperform the Nasdaq US 600 Index with positions in 600 mid-cap&nbsp;U.S. companies. The ETF holds positions in companies with market caps between $1.2 billion and $30.6 billion. The ETF rebalances quarterly. Shares of FNY are up 2% on Wednesday.&nbsp;
AMC Price Action: Shares of AMC Entertainment gained 95.22% Wednesday, closing at $62.55.&nbsp;

AAPL

AMZN

BKNG

SFYF

SOFI

TSLA

The 3 ETFs With Highest Exposure To AMC Entertainment Stock

On CNBC&#39;s &quot;Fast Money Halftime Report,&quot;&nbsp;the investment committee gave their final trades of the day.
BNY Mellon Investment Management&#39;s Liz Young likes Invesco Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>) and believes people are excited to get back out there.
Decatur Capital Management CEO Degas Wright likes Amphenol Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aph#NYSE">APH</a>).
Short Hills Capital Partners&rsquo; Stephen Weiss likes Moderna, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mrna#NASDAQ">MRNA</a>) and notes the company has a vaccine day coming up this Wednesday.
Virtus Investment Partners&rsquo; Joe Terranova likes NVIDIA Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>).

MRNA

NVDA

'Halftime Report' Final Trades: Moderna, Nvidia And More

Restaurants and bars are seeing a boost in business, thanks to two coinciding events: March Madness and the COVID-19 vaccination drive. 
Sports bars and restaurants across the country are seeing full seats again as basketball fans return to watch the NCAA tournament amid a partial reopening, many local news outlets are reporting:
<ul>
<li><a href="https://www.wtol.com/article/news/local/march-madness-brings-much-needed-boost-to-restaurants-bars-after-rough-year/512-dfd81554-f500-4bb9-8474-1c180bb62f99" target="_blank">WTOL</a>&nbsp;in Ohio&nbsp;said the return of the NCAA tournament has brought increased business to local restaurants and bars&nbsp;and that March Madness has drawn more attention this year.</li>
<li><a href="https://fox59.com/sports/big-tournament/march-madness-brings-renewed-sense-of-optimism-to-indys-short-term-rental-industry/" target="_blank">Fox59.com</a>&nbsp;reported&nbsp;that March Madness has brought a major economic boost for restaurants and bars in downtown Indianapolis, which was badly hit during the pandemic. And&nbsp;<a href="https://www.indystar.com/story/money/2021/03/19/march-madness-slowly-boosting-downtown-businesses/4771639001/" target="_blank">Indystar.com</a>&nbsp;said restaurants are witnessing full occupancy&nbsp;and are on a hiring spree.&nbsp;</li>
<li><a href="https://spectrumlocalnews.com/tx/san-antonio/news/2021/03/20/march-madness-is-back-in-business-for-texas-bar-and-restaurants" target="_blank">Spectrum News 1</a>&nbsp;said restaurants in Texas also are seeing a boost in business because of this year&#39;s March Madness.&nbsp;</li>
<li>According to the&nbsp;<a href="https://www.bizjournals.com/charlotte/news/2021/03/26/return-of-march-madness-boosting-bottom-line.html" target="_blank">Charlotte Business Journal</a>, restaurants in Charlotte, North Carolina, have welcomed the return of the March Madness tournament. One establishment,&nbsp;Fox &amp; Hound, has seen a sales jump beating levels in 2019, the last year March Madness was held.</li>
<li><a href="https://www.nbcconnecticut.com/news/local/cts-relaxed-restaurant-capacity-rolls-out-on-day-1-of-ncaa-tournament/2448950/" target="_blank">Nbcconnecticut.com</a>&nbsp;reported that Connecticut saw growth in terms of restaurant business for the first day of the men&rsquo;s NCAA college basketball tournament.&nbsp;</li>
<li><a href="https://www.nwahomepage.com/knwa/march-madness-bring-in-business-to-bars/">KNWA</a> reports bar-and-grills have seen a peak in business due to March Madness.&nbsp;</li>
<li>Restaurants in Las Vegas have seen increased visitors and business with the beginning of March Madness, the&nbsp;<a href="https://www.reviewjournal.com/entertainment/food/march-madness-capacity-shifts-help-fill-las-vegas-restaurants-2310390/" target="_blank">Las Vegas Review-Journal</a>&nbsp;reported.&nbsp;</li>
</ul>
With that in mind, head to Benzinga&#39;s&nbsp;<a href="https://www.benzinga.com/money/best-restaurant-stocks/">Biggest Restaurant Stock Movers of the Day</a> listings to see stocks with exposure to the sector.
On the ETF front, there is also the&nbsp;Invesco Dynamic Food &amp; Beverage ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pbj#NYSE">PBJ</a>), the Invesco Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>), and&nbsp;Consumer Discretionary Select Sector SPDR Fund (NYSE:&nbsp;XLY).
Photo by&nbsp;<a href="https://www.pexels.com/@ethnoyou?utm_content=attributionCopyText&amp;utm_medium=referral&amp;utm_source=pexels">Anna Kapustina</a>&nbsp;from&nbsp;<a href="https://www.pexels.com/photo/low-angle-photo-of-basketball-hoop-under-blue-sky-2533684/?utm_content=attributionCopyText&amp;utm_medium=referral&amp;utm_source=pexels">Pexels</a>.

Sports

March Madness Fuels Restaurant Business Across US; Stocks And ETFs In Sector Could Get A Bounce

The U.S. <a href="https://www.benzinga.com/general/restaurants">restaurant</a> industry ended 2020 with 2.5 million fewer jobs and more than 110,000 eating and drinking establishments were either temporarily closed or shut down for good, the National Restaurant Association says in a report.
Job Losses: The majority of restaurants and bars that closed in 2020 were &quot;well-established&quot; businesses that have been operating for an average of 16 years, the restaurant association said in its report titled &quot;2021 State of the Restaurant Industry.&quot; Unfortunately, 16% of restaurants that closed in 2020 had been operating for at least 30 years.
On average, a restaurant that closed employed 32 people, while 17% of restaurants kept at least 50 people employed.
Nearly three out of four restaurant owners who&nbsp;closed their business for good have no immediate desire to <a href="https://www.elluminatiinc.com/restaurant-opening-checklist/">open a new restaurant in</a> the months ahead. Only 48% of owners plan on staying in the food industry in some capacity in the months and years ahead.
State Of The Industry Today: The restaurant and foodservice industry entered 2020 on track to represent 10% of all payroll jobs in the economy, according to the association. But 62% of fine dining operators and 54% of family dining and casual dining operators indicate their staff levels are more than 20% below normal in early 2021.
Approximately 2 million fewer 16 to 34-year-olds are working in the industry today compared to pre-pandemic levels.
&quot;Restaurants were hit harder than any other industry during the pandemic, and still have the longest climb back to pre-coronavirus employment levels,&quot; the report stated.
Menu Innovation For 2021: Restaurant owners continue to adapt their menu items to stay relevant in the consumer&#39;s mind. Half of casual and family dining operators and 63% of fine-dining operators are offering fewer items on the menu today compared to pre-pandemic.
Consumers want to transact with restaurants that offer a simplified menu with a good selection of comfort foods and/or restaurants with healthier options, according to the report. The availability of alcohol was also highlighted as an important addition to a take-out menu.
Pent Up Demand: There is &quot;no doubt&quot; that consumers want to return to restaurants as it represents an &quot;integral part of our social fabric.&quot; Nearly nine out of 10 adults enjoy going to restaurants and 85% of them saying dining out is a better way to spend their time than cooking and cleaning at home.
&quot;Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic,&quot;&nbsp;said Hudson Riehle, senior vice president of National Restaurant Association&#39;s Research and Knowledge Group. &quot;We&#39;ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth.
&quot;With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.&quot;
(Photo by <a href="https://unsplash.com/@jaywennington?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Jay Wennington</a> on <a href="https://unsplash.com/s/photos/restaurant?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>)

Will Restaurants Recover In 2021?

There are going to be three key themes for the coming year, 2021, which will make some ETFs very attractive &mdash;&nbsp;something investors should keep an eye on &mdash;&nbsp;as per&nbsp;Ned Davis Research&rsquo;s Senior Portfolio Strategist Pat Tschosik.
Cannabis sector under the Democratic President-elect Joe Biden,&nbsp;the impact of Covid-19 vaccine manufacturing and distribution, and the electric vehicles segment are expected to emerge as the key themes for 2021, Tschosik said, as <a href="http://www.cnbc.com/2020/12/06/using-etfs-to-play-three-likely-big-themes-for-2021green-wave-covid-recovery-biden-agenda-ned-davis-breaks-down-how-to-play-these-themes-in-2021.html">reported</a> by CNBC.
Legalized Cannabis Under Joe Biden&rsquo;s Term: Tschosik believes that with the Democratic party at the helm of affairs, cannabis stocks may witness significant tailwinds in 2021. During the elections, four states, namely New Jersey, Arizona, South Dakota, and Montana <a href="https://www.benzinga.com/markets/cannabis/20/11/18347489/2020-ballot-results-where-is-weed-legal">legalized</a> the possession and use of marijuana.
The Ned Davis Research&rsquo;s strategist opines that furthering cannabis legalization on a nationwide level will not only be seen as a progressive agenda of the party but also generate a new model for tax collections on a state level.
The analyst recommends buying Global X Cannabis ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/potx#NASDAQ">POTX</a>), which has gained 44.76%&nbsp;since the election day, and&nbsp;iShares US Healthcare Providers ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ihf#NYSE">IHF</a>) &mdash; up&nbsp;10% in the same period, to gain exposure to the sector.
Since Nov. 3,&nbsp;Canopy Growth Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cgc#NASDAQ">CGC</a>) stock is up 39.7%, Aurora Cannabis Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/acb#NYSE">ACB</a>) by 122%, and Tilray Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tlry#NASDAQ">TLRY</a>) by 30%.
Impact of COVID-19 Vaccine: The news of multiple successful vaccine candidates is spurring hawkish market sentiments. These sentiments are not just restricted to healthcare companies, but also other businesses like retail stores, amusement parks, cinema halls, travel, and tourism, that suffered during the lockdown.
Stocks of travel and leisure companies are set for a rebound next year and Ned Davis Research strategist believes that&nbsp;Invesco Dynamic Leisure &amp; Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>) and&nbsp;US Global Jets ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jets#NYSE">JETS</a>) provide key exposure to the sector. Both the ETF&#39;s have dropped this year, with PEJ by 15% and JETS by 26%.&nbsp;
Movie theatre chain AMC Entertainment Holdings Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amc#NYSE">AMC</a>) stock is up 50% since Nov. 3 and Walt Disney Company&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>) by 24%. Airliner United Airlines Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ual#NASDAQ">UAL</a>) has risen 44% since the election day. Vacation rental booking company Airbnb Inc&nbsp;is also reportedly targeting a valuation of up to $42 billion in its upscaled IPO amid high demand.
Electric Vehicles,&nbsp;Renewable Energy Sources: Tschosik believes that the next year could be marked by a systematic growth in the electric vehicles and clean energy segment, CNBC reports. &ldquo;Clean energy momentum could continue for decades given the backing from both governments and private industry,&rdquo; as per the analyst.
The senior strategist lists two promising ETFs - the First Trust NASDAQ Clean Edge Green Energy (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qcln#NASDAQ">QCLN</a>) and&nbsp;Global X Autonomous &amp; Electric Vehicles ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/driv#NASDAQ">DRIV</a>) as buys for exposure to the sector. On a year-to-date basis, QCLN has gained close to 142%&nbsp;and DRIV by approximately 51%.
EV market leader Tesla Inc&rsquo;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) stock has jumped close to 600% since the beginning of the year. The stock rallied stronger in the second half of August and then in the second half of November.
Many Chinese EV companies raised funds from IPO listings in the U.S this year. Xpeng Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xpev#NYSE">XPEV</a>), an EV company backed by Chinese tech giant Alibaba Group Holdings (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), <a href="https://www.benzinga.com/news/20/08/17282493/alibaba-backed-ev-maker-xpeng-shoots-up-41-on-nyse-debut-after-1-5b-ipo">generated</a> $1.5 billion from the IPO in late August. Li Auto Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/li#NASDAQ">LI</a>) secured $1.1 billion from the IPO offering in July.

Cannabis

Long Ideas

Travel

BABA

DRIV

iShares Dow Jones US Health Care Provides Index Fund

JETS

POTX

First Trust NASDAQ Clean Edge Green Energy Index Fund

QCLN

TLRY

XPEV

Analyst Recommends These ETFs To Play 3 Key Themes For 2021 — EVs, Cannabis, And COVID-19 Recovery

Stocks are surging higher Monday morning in a case of d&eacute;j&agrave; vu to last Monday.
What Happened: Phase 3 results for Moderna Inc&rsquo;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mrna#NASDAQ">MRNA</a>) COVID-19 vaccine were <a href="https://www.benzinga.com/news/20/11/18379862/modernas-phase-3-covid-19-vaccine-shows-95-efficacy">reported</a>&nbsp;with the results showing a 94% efficacy rate.
The mRNA-1273 vaccine from Moderna requires refrigeration of 36 to 46 degrees Fahrenheit for 30 days, which could make this vaccine candidate offset some fears of the lower temps <a href="https://www.benzinga.com/general/biotech/20/11/18271410/pfizer-biontechs-covid-19-vaccine-is-90-effective-eua-filing-likely-by-late-november">needed</a> for the vaccine candidate from Pfizer Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) and BioNTech SE (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bntx#NASDAQ">BNTX</a>).
Why It&rsquo;s Important: The optimism of two vaccine candidates now showing strong Phase 3 results and nearing a potential finish line is sending markets higher.
Dow Jones Futures are up over 500 points, or about 2%, to 29,989. The SPDR S&amp;P 500 Trust ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>) is up 1% to $361.76.
Last Monday <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/11/18274798/irrational-exuberance-stocks-surging-markets-at-all-time-highs-on-pfizers-covid-19-">saw</a> the S&amp;P 500 trade 3% higher on the vaccine news from Pfizer and BioNTech.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/11/18274798/irrational-exuberance-stocks-surging-markets-at-all-time-highs-on-pfizers-covid-19-">Irrational Exuberance? Stocks Surge On Pfizer&#39;s COVID-19 Vaccine News</a>
What&rsquo;s On The Move: Shares of Moderna are up 13% to $101.38 in pre-market trading. Shares of Pfizer and BioNTech are down 2% and 6%, respectively.
The vaccine news is sending stocks in the cruise line, airline and entertainment sectors higher.
The US Global Jets ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jets#NYSE">JETS</a>), which tracks the airlines, is up 6% to $21.37.
The Invesco Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>) is up 4% to $36.50.
Stocks tied to the &quot;work-from-home&quot; sector are falling, with&nbsp;Zoom Video Communications (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/zm#NASDAQ">ZM</a>) down 5% to $382.48.

Futures

Pre-Market Outlook

BNTX

DJIA

Deja Vu: Markets Get Big Vaccine News Boost To Start The Week

With Congress struggling to pass a second stimulus plan, Mark Cuban has doubled down on his <a href="https://twitter.com/mcuban/status/1262084934598103040">plan from May</a> to help provide relief to those who need it and help stimulate the economy.
Cuban&rsquo;s Plan: Cuban, who is also the owner of the NBA&rsquo;s Dallas Mavericks, is calling for $1,000 stimulus checks to be sent to every house in America. The checks would be sent every two weeks for the next two months.
Cuban <a href="https://www.cnbc.com/2020/09/23/mark-cuban-americans-should-get-a-1000-dollar-stimulus-check-every-2-weeks.html?__source=sharebar|twitter&amp;par=sharebar">told CNBC</a> during an interview that the U.S. now has&nbsp;two economies: one for those able to stay afloat and one for those who are unable to stay afloat.
&ldquo;We need to get them help,&rdquo; Cuban said of the second group.
In March, Congress passed the Coronavirus Aid, Relief, and Economic Security Act at a cost of $2 trillion.
Cuban estimated his plan would cost $500 billion and help boost the demand for non-essential products.
<a href="https://www.benzinga.com/money/how-to-invest-your-1400-stimulus-check/">See also:&nbsp;How to Invest Your $1,400 Stimulus Check</a>
Use It Or Lose It: One of the important pieces of Cuban&rsquo;s stimulus plan is a &ldquo;use it or lose it&rdquo; concept that would give people 10 days to spend their stimulus check in an effort to help businesses stay open and stimulate the economy.
&ldquo;I don&rsquo;t care what they spend it on. It could be candy, it could be rent, it could be their mortgage, it could be anything they deem necessary or that they want,&rdquo; Cuban said in May.
The Sectors That Would Benefit: Cuban&#39;s&nbsp;relief plan would help struggling families with items like rent, groceries&nbsp;and bills.
The plan would also put unplanned cash in people&rsquo;s hands with a spending deadline, potentially leading to an increase in spending on big-ticket items.
Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Wal-Mart (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wmt#NYSE">WMT</a>) and Target (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tgt#NYSE">TGT</a>) stand out as three large retailers that could benefit from&nbsp;$1,000 checks spent on groceries, consumer goods&nbsp;and other large ticket items.
Best Buy Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bby#NYSE">BBY</a>) could see an increase in sales from people buying appliances, computers, or other electronics with their stimulus money.
Appliances have already seen a spike in demand due to more people working and learning from home.
Cuban&#39;s stimulus idea could also result in more appliances purchased as they become more of a need than a want, benefiting a company like Whirlpool Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/whr#NYSE">WHR</a>).
Since households wouldn&rsquo;t be able to save the money, perhaps it would be spent on future activities like a trip to one of The Walt Disney Company&rsquo;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>) theme parks, on a cruise or toward&nbsp;a vacation flight. This would benefit beleaguered sectors like hotels, theme parks, cruises&nbsp;and airlines.
ETF plays on this theme include the&nbsp;Invesco Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>) and US Global JETS ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jets#NYSE">JETS</a>).
Photo by <a href="https://commons.wikimedia.org/wiki/File:Mark_Cuban_(46714617804).jpg">Gage Skidmore via Wikimedia</a>.&nbsp;

Politics

Mark Cuban's Use-It-Or-Lose-It Stimulus Idea: The Sectors That Would Win

Global fears over an increase in COVID-19 cases was one of the contributing factors of markets trading down Monday. The S&amp;P 500 fell 1.2% to $3,281, its fourth straight day of declines.
A <a href="https://www.reuters.com/article/global-markets/global-markets-shares-fall-sharply-investors-seek-safety-as-covid-19-cases-rise-idUSL5N2GI2YJ">rising number</a> of COVID-19 cases has been seen in regions like Spain, France and the United Kingdom. Denmark, Greece and Spain have all placed new restrictions on activity in response to the increased number of cases in the region. The United Kingdom is <a href="https://www.nasdaq.com/articles/why-ruths-hospitality-mgm-resorts-and-melco-resorts-pulled-back-today-2020-09-21">considering</a> a national lockdown in response.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/09/17591122/peloton-zoom-more-stay-at-home-stocks-hold-up-during-market-downturn">Peloton, Zoom, More Stay-At-Home Stocks Hold Up During Market Downturn</a>
Restaurant Stocks Fall: One of the hardest-hit sectors of the global pandemic has been the restaurant sector. In the U.S., various states have banned eating out at restaurants or in a limited capacity. Restaurants that are more dependent on sit-down traffic and sales got hit hard on Monday.
<ul>
<li>Ruth&rsquo;s Hospitality Group Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ruth#NASDAQ">RUTH</a>) saw shares fall 8% to $10.61</li>
<li>Carrols Restaurant Group Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tast#NASDAQ">TAST</a>) fell 5.2% to $6.20</li>
<li>The Cheesecake Factory (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cake#NASDAQ">CAKE</a>)&nbsp;shares fell 5% to $27.86</li>
<li>Denny&rsquo;s Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/denn#NASDAQ">DENN</a>) shares fell 7% to %9.73</li>
<li>Red Robin Gourmet Burgers (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rrgb#NASDAQ">RRGB</a>) shares fell 8% to $13.21</li>
<li>Dine Brands Global (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/din#NYSE">DIN</a>) shares fell 6% to $52.94</li>
</ul>
The Invesco Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>) fell 3% to $32.23. Over 35% of the ETF&#39;s assets are in restaurant stocks.
QSR Fare Better: Quick service restaurant stocks didn&rsquo;t fall as far Monday, given their lower reliance on sit-down sales and a growing shift to takeout and home delivery.
<ul>
<li>Yum! Brands Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yum#NYSE">YUM</a>), owner of Taco Bell, Pizza Hut&nbsp;and KFC, saw shares fall 3% to $89.31.</li>
<li>McDonalds Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mcd#NYSE">MCD</a>) shares fell 2% to $216.41 less than a week after hitting all-time highs&nbsp;on the <a href="https://www.benzinga.com/news/20/09/17546759/travis-scott-broke-mcdonalds-supply-chain">strength of its new Travis Scott promotion</a>.</li>
<li>Chipotle Mexican Grill (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cmg#NYSE">CMG</a>)&nbsp;shares fell 1% to $1,206.52.</li>
<li>Starbucks Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbux#NASDAQ">SBUX</a>) shares fell 1% to $83.89.</li>
</ul>
Several Winners: The restaurant industry didn&rsquo;t see all red on Monday, as pizza stocks and delivery-focused stocks traded higher.
<ul>
<li>Dominos Pizza (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dpz#NYSE">DPZ</a>) shares were up 2% to $404.97.</li>
<li>Papa Johns International (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pzza#NASDAQ">PZZA</a>) shares traded up 3% to $84.47. Both these pizza companies hit new 52 week highs in the last two months and are up over 30% in 2020.</li>
<li>Wingstop Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wing#NASDAQ">WING</a>) shares were up 4%&nbsp;to $137.73. Shares are up over 50% in 2020.</li>
</ul>
Photo by&nbsp;Cbraccialini&nbsp;via Wikimedia.&nbsp;

DENN

PZZA

TAST

WING

Restaurant Stocks Fall On Heightened Global COVID-19 Concerns

Dow component Walt Disney Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>) reports fiscal second-quarter results after the close Wednesday in&nbsp;the company&#39;s first report in the midst of the coronavirus outbreak.
Down 28.66% year-to-date, Disney is proving its sensitivity to the pandemic. Disneyland and Disney World are closed, though the latter could be inching toward reopening. Disney cruises aren&#39;t sailing and there are no sports for ESPN to broadcast. So no, Disney+ and other <a href="https://www.benzinga.com/news/earnings/20/05/15941010/ready-player-one-3-etfs-for-video-game-earnings">stay-at-home entertainment</a> options aren&#39;t enough to carry the day for the stock in this environment.
Analysts are expecting Disney will post earnings of 93 cents per share on revenue of $18 billion. Last year, those numbers were $1.61 on sales of $14.9 billion.
Nearly 200 ETFs feature exposure to Disney. Here are a few to consider for today&#39;s report.
<h3>Invesco Dynamic Leisure and Entertainment ETF (PEJ)</h3>
The Invesco Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>) is the traditional ETF with the largest Disney allocation at 6.26%, and this fund is an eclectic mix of companies with some positive coronavirus leverage, such as Domino&#39;s Pizza (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dpz#NYSE">DPZ</a>) and others that are being hammered by the pandemic.
In other words, PEJ&#39;s problems are evident and they can&#39;t all be heaped on Disney. For example, the fund has a 21.46% weight to industrial stocks, <a href="https://www.benzinga.com/news/20/05/15940949/with-buffett-bailing-it-could-be-a-black-monday-for-airline-etf">all of which are airlines</a>. The ETF holds three casino stocks, another theme park operator, cinema operators and live venue firms.
Bottom line: Disney means something to PEJ, but this fund needs a lot of help from the broader economy to get in gear.
<h3>John Hancock Multifactor Media and Communications ETF (JHCS)</h3>
The John Hancock Multifactor Media and Communications ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jhcs#NYSE">JHCS</a>) was one of the first ETFs dedicated to the communications services sector that does not follow a cap-weighted methodology. JHCS emphasizes size, profitability and lower relative price.
That scheme reduces the dominance of Facebook (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>) and Alphabet (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) that&#39;s so common with this sector&#39;s ETFs. In fact, Netflix (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nflx#NASDAQ">NFLX</a>), a stock winning the shelter-in-place battle, is the largest JHCS components at almost 7.2%.
Disney is the <a href="https://www.jhinvestments.com/investments/etf/sector-funds/multifactor-media-and-communications-etf-jhcs#characteristics">seventh-largest holding</a> in this Hancock ETF at a weight of nearly 5%.
<h3>RYZZ Managed Futures Strategy Plus ETF (RYZZ)</h3>
The RYZZ Managed Futures Strategy Plus ETF (NYSE: RYZZ) is a long/short managed futures strategy that, believe it or not, lays claim to having the largest Disney weight at about 9.6%.
Disney is the fund&#39;s fifth-largest long component, but Alphabet is No. 1&nbsp;at more than 27%.
Photo courtesy of Disney.

Broad U.S. Equity ETFs

Short Ideas

Previews

GOOG

GOOGL

JHCS

3 ETFs For Disney Earnings

December is one of the best months of the year for U.S. stocks. Keeping with that theme, some corners of the market really enjoy the final month of the year.
With the holiday shopping season in full bloom, investors often look at consumer discretionary and retail stocks and exchange traded funds late in the year.
<h3>What Happened</h3>
Knowing that consumer discretionary stocks and ETFs can be rewarding in December is just one part of the equation. Investors can use more targeted approaches to the sector for potentially larger gains. That group of ETFs includes the Invesco Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pej#NYSE">PEJ</a>).
PEJ&#39;s 30 holdings are, as the fund&#39;s name implies, comprised primarily of entertainment and leisure firms. The fund&#39;s roster runs the gamut of airlines, hotel operators, media companies, restaurant operators and more.
PEJ targets the Dynamic Leisure &amp; Entertainment Intellidex Index, a smart beta benchmark. The index &ldquo;is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PEJ">according to Invesco</a>.
<h3>Why It&#39;s Important</h3>
PEJ is over 13 years old and has almost $127 million in assets under management, but often goes overlooked among consumer discretionary ETFs. That shouldn&#39;t be the case in December.
&ldquo;Historical data indicates that one exchange-traded fund in particular tends to shine in the final month of the year: the Invesco Dynamic Leisure and Entertainment ETF (PEJ),&rdquo; <a href="https://www.schaeffersresearch.com/content/analysis/2018/11/30/best-sectors-for-december">notes Schaeffer&#39;s Investment Research</a>.
Over the past 10 Decembers, PEJ has generated positive returns 90 percent of the time with an average gain of 3.49 percent, according to Schaeffer&#39;s data.
Top 10 holdings in PEJ include United Continental Holdings Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ual#NYSE">UAL</a>), Yum! Brands Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yum#NYSE">YUM</a>) and Walt Disney Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>).
<h3>What&#39;s Next</h3>
PEJ is coming off a strong November in which the fund gained 3.41 percent, notching its best monthly performance in six months.
&ldquo;Further, the ETF is set to topple its 10-week moving average for the first time since late September, before the shares pulled back to test the round-number $40 region, which acted as a floor in 2017,&rdquo; according to Schaeffer&#39;s.
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/11/12775848/focusing-on-a-cheap-emerging-markets-etf">A Cheap EM ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/11/12775910/direxion-unveils-four-leveraged-consumer-etfs">New Leveraged Consumer ETFs</a>

An ETF With An Enviable December Track Record

Just two trading days have been notched in June, but U.S. stocks are off to a solid start in the final month of the quarter. That could be seen as an encouraging sign give June&#39;s reputation for being unkind to stocks.
While some sector exchange-traded funds can be<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/06/9547005/best-sector-etfs-for-june-powering-up#/null"> decent performers this month,</a> others can provided big disappointments and some of those potential duds are arguably surprising.
<h3>Checking In On The Sector ETFs For June</h3>
For example, investors might do well to not bet on the start of the summer travel seasons with leisure and travel ETFs, such as the US Global Jets ETF (NYSE: <a class="ticker" href="/stock/jets#NYSE">JETS</a>) and the PowerShares Dynamic Leisure and Entertainment ETF (NYSE: <a class="ticker" href="/stock/pej#NYSE">PEJ</a>).
&ldquo;PEJ could struggle especially hard, if past is prologue. By the numbers, PEJ has lost an average of 3.1 percent during the past 10 Junes, ending positive just 30 percent of the time,&rdquo; according to <a href="http://www.schaeffersresearch.com/content/analysis/2017/06/01/stay-away-from-this-sector-in-june">Schaeffer&#39;s Investment Research</a>.
The $127.5 million PEJ tracks the Dynamic Leisure &amp; Entertainment Intellidex Index, a smart beta that is apt to have more turnover than a cap-weighted benchmark. That is to say PEJ&#39;s 41 holdings today probably do not look the same as three years ago or five years ago. PEJ&#39;s index considers companies &ldquo;based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PEJ">according to PowerShares</a>.
Currently, PEJ is a roughly 80 percent/20 percent split between consumer discretionary and industrial stocks, but all seven of the ETF&#39;s industrial holdings are airline stocks. Individual airlines that often struggle in June include Delta Air Lines, Inc. (NYSE: <a class="ticker" href="/stock/dal#NYSE">DAL</a>) and United Continental Holdings Inc (NYSE: <a class="ticker" href="/stock/ual#NYSE">UAL</a>).
Delta &ldquo;has ended June higher only&nbsp;twice in the past 10 years, losing 5.6 percent on average, and UAL stock also has just two positive finishes during that time, averaging a loss of 9.7 percent,&rdquo; according to Schaeffer&#39;s.
That is not good news for PEJ, which allocates a combined 9.8 percent of its weight to Delta and United. If those stocks hold true to historical June form, JETS could be pinched because the airline ETF allocates over 24 percent of its combined weight to those names.
Remembering that airlines are part of the broader industrial sector, perhaps it is not surprising that the Industrial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xli#NYSE">XLI</a>) is, historically, one of the worst-performing sector SPDR ETFs in June.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/06/9554222/an-adventurous-june-idea-for-a-faltering-sector">An Adventurous June Idea For A Faltering Sector</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/06/9546993/a-quality-etf-idea-for-june">A Quality ETF Idea For June</a>

These Sector ETFs Could See June Gloom

Blue Apron filed on Thursday for its initial public offering. The company sells a <A href="https://www.benzinga.com/pressreleases/16/05/b8028857/us-meal-kit-delivery-services-market-report-2016-analysis-technologies-">meal kit</a> delivery product that delivers weekly pre-portioned meals with accompanied recipes and instructions. Pricing starts at $8.99 per serving and includes free delivery with no commitments and the option to cancel at any time.
Blue Apron was founded in 2012 to give customers a solution to a "burdensome, time consuming, and expensive" shopping experience at grocery stores. The company's mission is to provide a better cooking experience that includes only the required items in order to reduce overall waste.
"Our core product is the cooking experience we help our customers create," the company said in its <A href="https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/a2232259zs-1.htm#cm16601_use_of_proceeds">regulatory filing</a>. "Central to these experiences are the original recipes we design and send along with fresh, seasonal ingredients directly to our customers."
By eliminating the middlemen (such as grocery stores) the company is able to directly sell to the consumer which helps drive costs down. Blue Apron says it is able to reach over 99 percent of the entire U.S. population.
The company intends to use the capital raised from the <A href="https://www.benzinga.com/news/ipos">IPO</a> to repay a portion of outstanding debt, for working capital, capital expenditures and general corporate purposes. Blue Apron may also use a portion of the proceeds to finance an acquisition, although there are currently no deals in the pipeline.
Competitors to Blue Apron include Hello Fresh, Peach Dish, Plated, Home Chef, Purple Carrot, according to a <a href="http://observer.com/2016/01/we-tried-blue-apron-hello-fresh-and-their-4-competitors-one-was-clearly-the-best/">2016 Observer review</a> of meal kit delivery companies.
<h3>The Numbers</h3>
Revenue for 2014, 2015 and 2016 totaled $77.8 million, $340.8 million and $795.5 million, respectively. This represents an impressive 338-percent growth rate from 2014 to 2015 and a growth rate of 133 percent from 2015 to 2016.
For the quarters ending March 31, 2016, and March 31, 2017, the company generated $172.1 million and $244.8 million in revenue, respectively. This represents a growth rate of 42 percent.
In the years ended December 31, 2014, 2015 and 2016, Blue Apron incurred net losses of $(30.8) million.
Related Links:
<A href="https://www.benzinga.com/general/biotech/17/05/9515232/alternative-paths-to-the-public-markets-nexeon-medsystems-form-10-ipo-">Alternative Paths To The Public Markets: Nexeon MedSystems' Form 10 IPO And Capital Consciousness</a>
<A href="https://www.benzinga.com/news/earnings/17/05/9430269/why-wall-street-and-the-economy-needs-a-robust-ipo-market">Why Wall Street, And The Economy, Needs A Robust IPO Market</a>

Topics

IPOs

Select Sector SPDR-Consumer Discretionary

Everything You Need To Know About Blue Apron, The Meal Kit Service That Just Filed To Go Public

Invesco Dynamic Leisure and Entertainment ETF declares quarterly distribution of $0.0176

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Of course, exchange-traded funds are inherently much less volatile than individual stocks. That&rsquo;s because ETFs track many different equities, so ETFs, of course, can&rsquo;t go bankrupt and won&rsquo;t tumble because they did something illegal or because their CEOs decide to leave. But on the other hand, all of the names within most ETFs are in one sector. This has led to the emergence of ETFs to sell.
For example, all of the stocks tracked by the iShares Biotechnology ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/ibb-stock-quote/">IBB</a>) are biotech companies. Therefore, if a severe, negative catalyst causes investors to be bearish about the sector tracked by an ETF, that ETF can indeed plunge sharply.
For that reason, it&rsquo;s important for investors to identify which ETFs to sell before they sink due to one or more negative catalysts. Here are three ETFs to sell that fit that category.

<h2>iShares MSCI China ETF (MCHI)</h2>
<a href="https://investorplace.com/wp-content/uploads/2023/01/shutterstock_1284302668-1-scaled-e1674585078963.jpg"><img src="https://investorplace.com/wp-content/uploads/2023/01/shutterstock_1284302668-1-scaled-e1674585078963-300x192.jpg" alt="a picture of the Shanghai stock exchange" width="300" height="192"></a>
As I noted in a previous column, China&rsquo;s economy has slowed sharply. The country&rsquo;s real estate, export, and manufacturing sectors are all struggling.
Moreover, the latter trends have resulted<a href="https://www.reuters.com/markets/asia/china-2023-gdp-growth-forecast-cut-50-45-2024-economists-2023-09-12/" target="_blank"> in a deceleration of</a> consumer spending, since 70% of the nation&rsquo;s wealth is invested in real estate, and many of its citizens who live in suburban and urban areas work in manufacturing.
As a result of these factors, it&rsquo;s not at all surprising that the iShares MSCI China ETF (NYSEArca: <a href="https://investorplace.com/stock-quotes/msci-stock-quote/">MSCI</a>) has tumbled about 15% since reaching its March high of slightly over $50.
But with economists, on average, cutting their GDP growth forecast for the world&rsquo;s second-largest economy to 5% from 5.5% recently and predicting a further slowdown to 4.5% growth next year, MCHI could drop significantly further.
At some point, I do expect China&rsquo;s economic stimulus measures to start bearing fruit, but those positive effects may not be seen until around the middle of next year.
<h2>The Energy Select SPDR Fund (XLE)</h2>
<div><img src="https://investorplace.com/wp-content/uploads/2023/04/opec-oil-stocks-1600-300x169.jpg" alt="Organization of the Petroleum Exporting Countries (OPEC) logo displayed on baby blue oil barrel next to red valve with steel pipes in background" width="300" height="169"><div>Source: shutterstock.com/Maxx-Studio</div></div>
The Energy Select SPDR Fund (NYSEArca:<a href="https://investorplace.com/stock-quotes/xle-stock-quote/">XLE</a>) primarily tracks U.S. oil and gas stocks, along with the shares of firms that provide equipment to fossil fuel companies.
The ETF&rsquo;s shares usually move in tandem with oil prices. Indeed, with oil prices rallying in recent weeks after Saudi Arabia and Russia cut their oil production, the ETF has been following suit. This puts it into the category of one of those ETFs to sell.
However, for a few reasons, I believe that oil could be set to retreat going forward. First, as I&rsquo;ve noted in recent weeks, the &ldquo;revenge travel&rdquo; trend has been easing in the U.S. and, as I reported above, the Chinese economy is decelerating.&nbsp; Also noteworthy is that the U.S. dollar has been strengthening in recent days, and the latter trend tends to put downward pressure on oil prices.
Additionally, electric vehicle sales have been sharply accelerating in the U.S., Europe, and China. As a result, I don&rsquo;t think that the Saudis and other oil producers will let oil prices get much higher because they don&rsquo;t want to &ldquo;kill the golden goose&rdquo; too soon by causing EV sales to greatly accelerate.
And finally. with the U.S. and Saudi Arabia negotiating <a href="https://www.csis.org/analysis/saudi-request-us-nuclear-cooperation-and-its-geopolitical-quandaries" target="_blank">over the Saudis&rsquo; nuclear ambitions,</a> I believe that the Saudis may be using their oil production as a negotiating tool with Washington. Once the nuclear issue is resolved, they may increase the amount of oil they pump, pushing oil prices down.
As a result, I view XLE as one of the top ETFs to sell.
<h2>Invesco Dynamic Leisure and Entertainment ETF (PEJ)</h2>
<div><img src="https://investorplace.com/wp-content/uploads/2022/06/air-travel-1600-300x169.png" alt="Plane travel. Man standing in airport waiting for flight." width="300" height="169"><div>Source: Olena Yakobchuk / Shutterstock</div></div>
The Invesco Dynamic Leisure and Entertainment ETF (NYSEArca: <a href="https://investorplace.com/stock-quotes/pej-stock-quote/">PEJ</a>) tracks the performance of many prominent U.S. <a href="https://investorplace.com/industries/consumer-discretionary/travel/">travel stocks</a>, including&nbsp; Airbnb (NASDAQ:<a href="https://investorplace.com/stock-quotes/abnb-stock-quote/">ABNB</a>), Delta Air Lines (NYSE:<a href="https://investorplace.com/stock-quotes/dal-stock-quote/">DAL</a>), and Booking Holdings (NASDAQ:<a href="https://investorplace.com/stock-quotes/bkng-stock-quote/">BKNG</a>).
Travel within America <a href="https://nypost.com/2023/08/04/airlines-slash-domestic-flight-prices/" target="_blank">has been slumping</a>, causing the prices of domestic airline tickets to sink about 15% last month versus the same period a year earlier.
Moreover, Southwest Airlines (NYSE:<a href="https://investorplace.com/stock-quotes/luv-stock-quote/">LUV</a>) in July <a href="https://www.reuters.com/business/aerospace-defense/southwest-warns-higher-full-year-costs-quarterly-profit-falls-2023-07-27/" target="_blank">provided weaker-than-expected</a> guidance and reported second-quarter results that came in below analysts&rsquo; average estimates.
And even back in June, the U.S. Travel Association <a href="https://www.ustravel.org/news/summer-travel-expectations-still-strong-economic-pressure-and-poor-travel-experience-may" target="_blank">reported that</a> &ldquo;the toll of inflation and higher interest rates is impacting overall spending behaviors and we are starting to see a softening of some travel indicators as of the latest April data.&rdquo;
Given all of these points, PEJ stock could be poised for a rather large pullback in the coming weeks and months. This makes it one of those ETFs to sell.
As of this writing, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel&rsquo;s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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The post <a href="https://investorplace.com/2023/10/ticking-time-bombs-3-etfs-to-dump-before-the-damage-is-done/">Ticking Time Bombs: 3 ETFs to Dump Before the Damage Is Done</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

Ticking Time Bombs: 3 ETFs to Dump Before the Damage Is Done

Year-end rally would favor cyclicals – Ned Davis Research

Retail sector in focus as Black Friday shopping kicks off

U.S. sees record Black Friday online sales, driven by price-conscious shoppers

Invesco Dynamic Leisure and Entertainment ETF declares quarterly distribution of $0.1715

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Several different food-related exchange traded funds (ETFs) are available that dabble in <a href="https://investorplace.com/industries/consumer-discretionary/retail/restaurant/">restaurant stocks</a>.&nbsp;The largest is the Invesco Leisure and Entertainment ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/pej-stock-quote/">PEJ</a>), with net assets of <a href="https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Institutional&amp;ticker=PEJ">$298 million</a>. However, only four out of its 31 holdings are pure-play restaurant stocks.&nbsp;



An industry-specific ETF to select for restaurant stocks would be the AdvisorShares Restaurant ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/eatz-stock-quote/">EATZ</a>). With an appropriately designated stock symbol, EATZ is actively managed and is entirely made up of restaurant chains, except for a couple of food distributors. However, it has less than <a href="https://advisorshares.com/etfs/eatz/">$3 million</a> in net assets, so I wouldn&rsquo;t recommend you buy it.



PEJ and EATZ are up 10% and 6% year-to-date (YTD), with EATZ gaining more than 28% in the past six months, a sign restaurant stocks are on the mend. With this in mind, here are three restaurant stocks that analysts love right now.&nbsp;



<h2>Yum China Holdings (YUMC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/07/yumc-stock-1-300x169.jpg" alt="A banner for Yum China (YUMC) decorates the New York Stock Exchange."><div>Source: rblfmr / Shutterstock.com</div></div>Yum China Holdings (NYSE:<a href="https://investorplace.com/stock-quotes/yumc-stock-quote/">YUMC</a>) is the largest of the three restaurant stocks on this list, with a market capitalization of $15.5 billion. Of the <a href="https://www.marketwatch.com/investing/stock/yumc/analystestimates">33 analysts</a> covering its stock, 22 rate it a &ldquo;buy,&rdquo; with a median target price of $55.07, 43% higher than where it&rsquo;s currently trading.



YUMC is China&rsquo;s operator of KFC and Pizza Hut. But unfortunately, the Chinese population hasn&rsquo;t been dining out as often due to higher inflation in 2023 and a sputtering domestic economy. This has severely reduced Yum China&rsquo;s same-store sales growth.&nbsp;



As a result, YUMC shares are down nearly 40% over the past year. YUMC stock trades at one of the lowest points since Yum Brands (NYSE:<a href="https://investorplace.com/stock-quotes/yum-stock-quote/">YUM</a>) spun it off in <a href="https://www.forbes.com/sites/ywang/2016/11/01/yum-brands-spins-off-china-unit-in-new-york-amid-losses-in-market-share/?sh=59e099e74b97">November 2016</a>. As recently as March 2023, it traded well over $60.&nbsp;



The company reported strong <a href="https://yumchinaholdingsinc.gcs-web.com/static-files/4a653df7-310b-4190-97c2-384b0189032d">2023 results</a> in February, including a 21% increase in system-wide sales, 7% same-store sales growth, opening nearly 1,700 new stores and an operating profit of $1.1 billion, 79% higher than a year earlier.&nbsp;&nbsp;



Due to the strong year, it plans to buy back $1.25 billion of its stock in 2024 and increase its quarterly dividend to 16 cents. It also plans to open up to 1,700 stores this year to reach 20,000 by the end of 2026. It finished 2023 with 14,644 in over 2,000 cities.&nbsp;



With a bright future ahead, YUMC is one of the restaurant stocks that has value right now.&nbsp;



<h2>Arcos Dorados (ARCO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/07/mdc-1600-300x169.jpg" alt="McDonald's restaurant in Thailand."><div>Source: Tama2u / Shutterstock</div></div>Arcos Dorados (NYSE:<a href="https://investorplace.com/stock-quotes/arco-stock-quote/">ARCO</a>) is the second-largest of the three restaurant stocks, with a market cap of $2.4 billion. All <a href="https://www.marketwatch.com/investing/stock/arco/analystestimates">six analysts</a> covering its stock rate it a &ldquo;buy,&rdquo; with a median target price of $14.30, 27% higher than where it&rsquo;s currently trading.&nbsp;



Just as Yum China focuses on KFC and Pizza Hut restaurants in China, Arcos focuses on McDonald&rsquo;s (NYSE:<a href="https://investorplace.com/stock-quotes/mcd-stock-quote/">MCD</a>) restaurants in Latin America and the Caribbean.&nbsp;



It is the region&rsquo;s largest restaurant chain, with <a href="https://www.businesswire.com/news/home/20240313225693/en/Arcos-Dorados-Reports-Strong-Fourth-Quarter-and-Full-Year-2023-Financial-Results">2,361 locations</a> as of Dec. 31, 2023. The company owns 71% of them, and the rest are franchised. Approximately 48% of its locations are in Brazil, with the remainder split between northern and southern Latin America.&nbsp;&nbsp;



In 2023, it had $4.33 billion in revenue, up 19.6% from 2022. Its net income was $181.3 million, 29.2% higher than a year earlier.&nbsp;It trades at a reasonable 13x its 2023 earnings of 86 cents. McDonald&rsquo;s trades at <a href="https://www.morningstar.com/stocks/xnys/mcd/valuation">23.3x </a>earnings, almost double.



I <a href="https://investorplace.com/2023/01/the-3-best-south-american-stocks-to-buy-in-2023/">recommended</a> ARCO stock in January 2023 at $8.70 a share. It&rsquo;s up 29% since. It&rsquo;s still a buy in double digits.&nbsp;



<h2>Portillo&rsquo;s (PTLO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/10/ptlo-stock-1-300x169.jpg" alt="The front of a Portillo's (PTLO) hotdog restaurant in Riverside, California."><div>Source: TonelsonProductions / Shutterstock.com</div></div>Portillo&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/ptlo-stock-quote/">PTLO</a>) is the smallest of the three restaurant stocks, with a market capital of $967 million. Seven of the <a href="https://www.marketwatch.com/investing/stock/ptlo/analystestimates">10 analysts</a> covering its stock rate it a &ldquo;buy,&rdquo; with a median target price of $21.11, 59% higher than where it&rsquo;s currently trading.&nbsp;



All three of the restaurant stocks on this list are down in 2024, with Portillo&rsquo;s doing the worst, down by 15%. The operator of fast-casual restaurants serving Chicago-style food went public in October 2021 at <a href="https://investors.portillos.com/news-releases/news-release-details/portillos-inc-announces-pricing-initial-public-offering">$20 a share</a>. Its shares currently trade 34% below its initial public offering (IPO) pricing.&nbsp;



When it went public, it had 67 locations in nine states. Today, <a href="https://investors.portillos.com/news-releases/news-release-details/portillos-inc-announces-fourth-quarter-and-fiscal-year-2023">84</a> are open in 10 states, up from 72 at the end of 2022. In 2023, it opened locations in Arizona, Florida, Illinois and Texas. In 2024, it plans to open at least nine locations.



For its business in 2024, Portillo&rsquo;s expects 12-15% restaurant unit growth, same-store sales growth in the low single digits revenue growth in the mid-teens and adjusted EBITDA growth in the low teens.



In late March, Jefferies analysts <a href="https://www.investing.com/news/company-news/portillos-stock-pt-cut-but-jefferies-maintains-buy-on-solid-fundamentals-93CH-3356826">cut</a> Portillo&rsquo;s price target by $3 to $21. However, it maintained its &ldquo;buy&rdquo; rating on the stock, suggesting that the company will continue to be successful with its expansion plans outside the Chicago area. Skeptics have overstated concerns about the restaurant operator&rsquo;s financials and business, but I think it&rsquo;s another value buy.



On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Will Ashworth has written about investments full-time since 2008. Publications where he&rsquo;s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/wall-street-favorites-3-restaurant-stocks-with-strong-buy-ratings-for-april-2024/">Wall Street Favorites: 3 Restaurant Stocks With Strong Buy Ratings for April 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.