- FUN +1.74%
Six Flags Entertainment Corporation (NYSE:FUN) is one of the stocks that received Jim Cramer’s latest comments. Cramer noted the company’s significant leverage ratio, as he remarked:
“What went wrong? In a word, everything. Six Flags has been hit with macroeconomic headwinds and some very company-specific problems, creating a perfect storm of poor attendance… What makes this so much more worse? Six Flags has a terrible balance sheet, that’s why the stock’s really obliterated. Both Six Flags and Cedar Fair went into a merger process with a fair amount of debt. And the current Six Flags now has a sky-high leverage ratio of 6.3. Anything above three is considered high. Anything above four is very high. And anything above that is, well, let’s just say, precarious…
Pixabay/Public Domain
Six Flags Entertainment Corporation (NYSE:FUN) runs a collection of amusement parks, water parks, and resort properties.
While we acknowledge the potential of FUN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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