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Is Amer Movil (AMX) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Amer Movil (AMX - Free Report) . AMX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.10, while its industry has an average P/E of 12.28. Over the past year, AMX's Forward P/E has been as high as 15.24 and as low as 8.90, with a median of 13.38.

AMX is also sporting a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMX's PEG compares to its industry's average PEG of 1.07. Over the last 12 months, AMX's PEG has been as high as 0.93 and as low as 0.53, with a median of 0.78.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMX has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.9.

Finally, we should also recognize that AMX has a P/CF ratio of 3.41. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AMX's current P/CF looks attractive when compared to its industry's average P/CF of 6.77. Over the past 52 weeks, AMX's P/CF has been as high as 5.21 and as low as 3.32, with a median of 4.56.

Value investors will likely look at more than just these metrics, but the above data helps show that Amer Movil is likely undervalued currently. And when considering the strength of its earnings outlook, AMX sticks out at as one of the market's strongest value stocks.


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