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Here's Why You Need to Keep an Eye on America Movil (AMX)
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América Móvil, S.A.B. de C.V. (AMX - Free Report) appears to be a promising stock to add to the portfolio in tackling the current macroeconomic and geopolitical uncertainties and benefit from its healthy fundamentals and growth prospects.
AMX also has the favorable combination of a VGM Score of B and a Zacks Rank #2. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a VGM Score of A or B offer solid investment opportunities.
The stock has lost 4.9% in the past year compared with the sub-industry’s decline of 17.8%. It is still trading 14% below its 52-week high of $22.65 on May 27, 2022, making it relatively affordable for investors.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2022 earnings of $1.27 per share suggests growth of approximately 24.5% from the year-ago period’s levels. It has remained unchanged in the past seven days.
For 2023, the Zacks Consensus Estimate for earnings is pegged at $1.38 per share, indicating a year-over-year increase of 9.1%. The stock has an impressive long-term earnings per share growth expectation of 8.4%.
For 2022 and 2023, the company’s revenue estimates are pegged at $42.9 billion and $43.2 billion, respectively.
Factors Driving Growth
America Movil provides integrated telecommunications services in Latin America. It offers enhanced communications solutions in 25 countries in Latin America, the United States and Central and Eastern Europe.
The company is expected to benefit from increasing broadband client base and wireless subscriber additions, especially in Brazil, Austria, Colombia and Peru. In the last quarter, it gained 2.9 million wireless subscribers, which included 1.9 million post-paid subscribers. The company’s acquisition of Brazil’s Oi and Nextel Brazil from NII Holdings has helped the company to significantly improve its market shares in Brazil.
In the last reported quarter, Mobile Service sales were boosted owing to realized synergies from the previous acquisition of Brazil’s Oi. The company’s efforts to increase shareholder value, lower debt and comprehensive financing costs by selling off cellular towers to Sitios Latinoamerica will bode well in the long term. Focused 5G efforts and the deployment of state-of-the-art technologies are tailwinds.
However, fixed-line platform performance is being affected due to lower Pay TV services and wireline voice revenue. Leveraged balance sheet and forex volatility remain headwinds.
Other Stocks to Consider
Some top-ranked stocks from the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Asure Software (ASUR - Free Report) . While Arista and Jabil sport a Zacks Rank #1, Asure carries a Zacks Rank #2.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.37 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 13.7% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL are up 1.3% in the past year.
The Zacks Consensus Estimate for Asure Software’s 2022 earnings is pegged at 7 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 23%.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 83.3%. Shares of ASUR have soared 35.6% in the past year.
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Here's Why You Need to Keep an Eye on America Movil (AMX)
América Móvil, S.A.B. de C.V. (AMX - Free Report) appears to be a promising stock to add to the portfolio in tackling the current macroeconomic and geopolitical uncertainties and benefit from its healthy fundamentals and growth prospects.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMX also has the favorable combination of a VGM Score of B and a Zacks Rank #2. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a VGM Score of A or B offer solid investment opportunities.
The stock has lost 4.9% in the past year compared with the sub-industry’s decline of 17.8%. It is still trading 14% below its 52-week high of $22.65 on May 27, 2022, making it relatively affordable for investors.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2022 earnings of $1.27 per share suggests growth of approximately 24.5% from the year-ago period’s levels. It has remained unchanged in the past seven days.
For 2023, the Zacks Consensus Estimate for earnings is pegged at $1.38 per share, indicating a year-over-year increase of 9.1%. The stock has an impressive long-term earnings per share growth expectation of 8.4%.
For 2022 and 2023, the company’s revenue estimates are pegged at $42.9 billion and $43.2 billion, respectively.
Factors Driving Growth
America Movil provides integrated telecommunications services in Latin America. It offers enhanced communications solutions in 25 countries in Latin America, the United States and Central and Eastern Europe.
The company is expected to benefit from increasing broadband client base and wireless subscriber additions, especially in Brazil, Austria, Colombia and Peru. In the last quarter, it gained 2.9 million wireless subscribers, which included 1.9 million post-paid subscribers. The company’s acquisition of Brazil’s Oi and Nextel Brazil from NII Holdings has helped the company to significantly improve its market shares in Brazil.
In the last reported quarter, Mobile Service sales were boosted owing to realized synergies from the previous acquisition of Brazil’s Oi. The company’s efforts to increase shareholder value, lower debt and comprehensive financing costs by selling off cellular towers to Sitios Latinoamerica will bode well in the long term. Focused 5G efforts and the deployment of state-of-the-art technologies are tailwinds.
However, fixed-line platform performance is being affected due to lower Pay TV services and wireline voice revenue. Leveraged balance sheet and forex volatility remain headwinds.
Other Stocks to Consider
Some top-ranked stocks from the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Asure Software (ASUR - Free Report) . While Arista and Jabil sport a Zacks Rank #1, Asure carries a Zacks Rank #2.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.37 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 13.7% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL are up 1.3% in the past year.
The Zacks Consensus Estimate for Asure Software’s 2022 earnings is pegged at 7 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 23%.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 83.3%. Shares of ASUR have soared 35.6% in the past year.