We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Hold America Movil Amid Risks
Read MoreHide Full Article
On Aug 14, Mexican telecom behemoth, America Movil SAB (AMX - Free Report) was upgraded to Zacks Rank #3 (Hold).
The price performance of the company has been encouraging for the last six months. While the stock price increased 37.8%, the industry gained 7.3% over the same time period.
In fact, America Movil has been systematically enriching its spectrum portfolio for the last couple of years. Evidently, it acquired 60 MHz of wireless spectrum (airwave) in the 2.5 GHz band from Grupo MVS, recently. In May, Mexican telecom regulator, Federal Telecommunications Institute (IFT), approved this deal. However, the financial terms are yet to be disclosed. Going forward, we believe this buyout will enhance the company’s high-speed data service.
According to a recent report by the Competitive Intelligence Unit, America Movil’s wireless division, Telcel, is dominating mobile number porting in the Mexican region.
Meanwhile, the company’s continuous participation in spectrum auctions for the deployment of 4G LTE services and expansion of 3G footprints looks impressive. Also, it launched fourth-generation (4G) mobile services in 11 cities across Mexico.
Furthermore, America Movil introduced LTE services in Brazil where it currently covers 18 cities.
However, this telecom behemoth’s aggressive promotional strategy that includes discounts and subsidized offers continues to hurt its margins. Moreover, the company’s Brazilian operation, Claro, faces competitive threat from Vivo, owned by Telefonica Brazil SA (VIV - Free Report) . In addition, U.S. telecom giant AT&T Inc.’s (T - Free Report) entry into the Mexican telecom industry with the acquisition of Gurpo Iusacell and Nextel de Mexico, was a major setback for the company.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
Image: Bigstock
Here's Why Investors Should Hold America Movil Amid Risks
On Aug 14, Mexican telecom behemoth, America Movil SAB (AMX - Free Report) was upgraded to Zacks Rank #3 (Hold).
The price performance of the company has been encouraging for the last six months. While the stock price increased 37.8%, the industry gained 7.3% over the same time period.
In fact, America Movil has been systematically enriching its spectrum portfolio for the last couple of years. Evidently, it acquired 60 MHz of wireless spectrum (airwave) in the 2.5 GHz band from Grupo MVS, recently. In May, Mexican telecom regulator, Federal Telecommunications Institute (IFT), approved this deal. However, the financial terms are yet to be disclosed. Going forward, we believe this buyout will enhance the company’s high-speed data service.
According to a recent report by the Competitive Intelligence Unit, America Movil’s wireless division, Telcel, is dominating mobile number porting in the Mexican region.
Meanwhile, the company’s continuous participation in spectrum auctions for the deployment of 4G LTE services and expansion of 3G footprints looks impressive. Also, it launched fourth-generation (4G) mobile services in 11 cities across Mexico.
Furthermore, America Movil introduced LTE services in Brazil where it currently covers 18 cities.
However, this telecom behemoth’s aggressive promotional strategy that includes discounts and subsidized offers continues to hurt its margins. Moreover, the company’s Brazilian operation, Claro, faces competitive threat from Vivo, owned by Telefonica Brazil SA (VIV - Free Report) . In addition, U.S. telecom giant AT&T Inc.’s (T - Free Report) entry into the Mexican telecom industry with the acquisition of Gurpo Iusacell and Nextel de Mexico, was a major setback for the company.
Stock to Consider
Investors interested in broader Computer and Technology space may consider BlackBerry Limited sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
See these buy recommendations now >>