A leisure business trading at over 50 times forward earnings carries below-minimum business quality, a 2-and-2 earnings record over the past year, and 21% short interest — with only 2.6% headroom to the near-term price ceiling and a risk/reward of 0.37-to-1, the setup offers no margin of safety despite a constructive near-term price chart.
Thesis pillars
- Below Minimum Business Quality→Stable
- Erratic Earnings Track Record→Stable
- Heavy Short Interest And Elevated Iv↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 26, 2026
Six Flags Entertainment Corpora (FUN) Stock Analysis
Falling Knife setup · Inst Constrain edge
Consumer Cyclical · Leisure
Sell if holding. Engine safety override at $7.54: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 6.4:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 29%; Elevated put/call ratio: 5.00; Below-average business quality.
The Company is North America's largest regional amusement park operator with 26 amusement parks, 15 separately gated water parks and nine resort properties. Of the 41 amusement and water parks, 37 are located in the United States, two are located in Mexico and two are located in... Read more
Sell if holding. Engine safety override at $7.54: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 6.4:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 29%; Elevated put/call ratio: 5.00; Below-average business quality. Chart setup: Death cross, below all MAs, RSI 24, MACD bearish. Score 4.1/10, moderate confidence.
Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA) and earnings proximity 6d<=7d. Suitability: speculative.
Recent developments
updated 2026-10-29Recent Developments — Six Flags Entertainment Corpora
Latest news
- NEWS 'Roller Coaster Fatality Rattles Six Flags CEO’s Turnaround Plan' - Bloomberg — benzinga Oct 28, 2026 negative
- NEWS Capital-Light Expansion Isn't a Golden Ticket—How To Stress-Test Valuations — benzinga Oct 26, 2026 neutral
- NEWS Six Flags Announces Safety Upgrades Following Fatal Roller Coaster Incident — fiscal.ai Oct 26, 2026 negative
- NEWS ServiceNow To Rally Over 26%? Here Are 10 Top Analyst Forecasts For Monday — benzinga Oct 26, 2026 neutral
- NEWS Goldman Sachs Maintains Neutral on Six Flags Entertainment, Lowers Price Target to $6 — benzinga Oct 26, 2026 neutral
Generated 2026-10-29T11:08:51Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
5 floor-breakers·1 ceiling hit
Revenue shrinking — -7.0% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static
Volatile — 10.4% daily ATR makes tight stops impractical. Position-size conservatively.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $7.54: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10 and A.R:R 6.4:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 29%; Elevated put/call ratio: 5.00; Below-average business quality. Chart setup: Death cross, below all MAs, RSI 24, MACD bearish. Prior stop was $7.01. Score 4.1/10, moderate confidence.
Analyst target: $14.79 (+96.2% upside). Prior stop was $7.01. Stop-loss: $7.01.
Quality below floor (2.5 < 4.0).
Six Flags Entertainment Corpora trades at a P/E of N/A (forward -86.8). TrendMatrix value score: 8.9/10. Verdict: Sell.
21 analysts cover FUN with a consensus score of 3.8/5. Average price target: $17.
What does Six Flags Entertainment Corpora do?The Company is North America's largest regional amusement park operator with 26 amusement parks, 15 separately gated...
The Company is North America's largest regional amusement park operator with 26 amusement parks, 15 separately gated water parks and nine resort properties. Of the 41 amusement and water parks, 37 are located in the United States, two are located in Mexico and two are located in Canada. The parks are family-oriented, with recreational facilities for people of all ages, and provide clean and attractive environments with exciting rides and immersive entertainment.