Many analysts think that Hollywood is entering a new phase of recovery after years of disruption from the pandemic, labor strikes, and a rapidly changing media landscape. Production delays have eased, release schedules are filling, and both theaters and streaming platforms are starting to feel the benefits of a renewed content pipeline.
For investors, this marks a shift from survival mode back toward growth, with select companies positioned to capitalize on the rebound. Box office revenues are showing signs of life, supported by blockbuster releases and premium viewing formats like IMAX that draw audiences back to theaters.
Streaming platforms are evolving their strategies, prioritizing profitability and retention over raw subscriber growth, while major entertainment groups are leaning on sports, live events, and international markets to diversify earnings.
The result is a sector where top players are combining new revenue streams with improved cost discipline, laying the groundwork for sustainable expansion. Many entertainment stocks remain priced below their pre-pandemic peaks, offering potential upside for investors who believe in the sector’s long-term resilience.
Here are 10 entertainment stocks quietly building momentum. Below, I take a closer look at 3 that analysts believe offer the greatest upside right now.
| Company Name (Ticker) | P/E Ratio | Analyst Upside |
| Lionsgate Studios (LION) | N/A | 49% |
| Cinemark Holdings (CNK) | 16 | 32% |
| IMAX Corporation (IMAX) | 18 | 30% |
| Madison Square Garden Sports (MSGS) | N/A | 29% |
| Sony Group (6758) | N/A | 21% |
| Netflix (NFLX) | 40 | 17% |
| Warner Bros. Discovery (WBD) | N/A | 13% |
| AMC Entertainment Holdings (AMC) | -6 | 13% |
| The Walt Disney Company (DIS) | 20 | 11% |
| Paramount Global (PARA) | 10 | -7% |
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Lionsgate Studios (LION)
Lionsgate Studios (LION) is a leading independent content producer with a deep film and television library, multiple streaming partnerships, and a strong presence across platforms. Its portfolio includes hit franchises like John Wick, The Hunger Games, and a growing slate of original series.
Lionsgate recently completed the spin-off of its studio business from its STARZ business, resulting in two distinct publicly traded companies. This strategic separation has created a more focused content engine in Lionsgate Studios (LION) while allowing Lionsgate Entertainment to focus on its media networks.
The studio segment generates consistent revenue from licensing, syndication, and international distribution, offering more stability than traditional box office-dependent models. Lionsgate Studios did report -$31M in operating cash flow last quarter, but this is mainly due to timing of payments, and this is expected to stabilize.
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Cinemark Holdings (CNK)
Cinemark Holdings (CNK) is one of the largest movie theater chains in North and South America, which currently operates 497 theaters with over 5,600 screens and a focus on suburban markets. It’s built a loyal customer base through its Movie Club subscription and premium large-format experiences.
Cinemark generates solid operating cash flow and has prioritized deleveraging its balance sheet post-pandemic. The company recently reinstated its dividend, with a forward yield of around 1.5%, and aims to grow shareholder returns alongside box office recovery.
With studios returning to theatrical-first strategies and a leaner cost structure, Cinemark is positioned to benefit from pent-up demand and blockbuster releases in the coming years.
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IMAX Corporation (IMAX)
IMAX Corporation (IMAX) specializes in immersive cinematic experiences, operating a global network of premium large-format theaters and licensing its proprietary projection technology to exhibitors worldwide.
IMAX has a strong free cash flow profile, with recent reports showing free cash flow of approximately $38 million over the last twelve months. This solid generation of cash supports its global expansion efforts. It doesn’t currently pay a dividend but reinvests earnings into global expansion, including rapid growth in Asia and strategic upgrades to its technology platform.
The company benefits from a steady pipeline of tentpole films and an increasing share of box office receipts, thanks to higher ticket prices and elevated audience demand for premium experiences. With a high-margin licensing model and global reach, IMAX offers long-term upside tied to the future of theatrical entertainment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
