Should You Really Buy Six Flags Stock in a Bear Market?
Last year, it looked like the roller-coaster ride had finally ended for Six Flags Entertainment (NYSE: SIX). The amusement park operator had largely bounced back from the COVID-19 pandemic and bear market. But then it all turned south for the stock again with its shares off 52% year to date.
Now, the company's modest growth prospects and substantial long-term debt could pose serious challenges in these worsening macroeconomic conditions. Let's review.
Six Flags is a leading theme park operator with 27 properties across the United States, Mexico, and Canada. Like most in-person entertainment venues, its operations faced severe restrictions during the COVID-19 pandemic, which forced the closure of its locations for much of 2020 and 2021. But then the company saw a surge of growth in 2022's first quarter -- with sales jumping 68% year over year thanks to easy comparisons to 2021.
Source Fool.com
