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.
Are Investors Undervaluing Fomento Economico Mexicano (FMX) Right Now?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Fomento Economico Mexicano (FMX - Free Report) . FMX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.05, while its industry has an average P/E of 21.36. FMX's Forward P/E has been as high as 26.11 and as low as 14.13, with a median of 20.49, all within the past year.
Investors will also notice that FMX has a PEG ratio of 1.32. 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. FMX's PEG compares to its industry's average PEG of 2.68. Within the past year, FMX's PEG has been as high as 2.18 and as low as 1.22, with a median of 1.47.
Another notable valuation metric for FMX is its P/B ratio of 3.73. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FMX's current P/B looks attractive when compared to its industry's average P/B of 9.96. Over the past year, FMX's P/B has been as high as 3.98 and as low as 1.47, with a median of 1.74.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FMX has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.87.
Finally, investors should note that FMX has a P/CF ratio of 7.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.53. Over the past 52 weeks, FMX's P/CF has been as high as 17.10 and as low as 6.91, with a median of 9.94.
Value investors will likely look at more than just these metrics, but the above data helps show that Fomento Economico Mexicano is likely undervalued currently. And when considering the strength of its earnings outlook, FMX sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Fomento Economico Mexicano (FMX) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Fomento Economico Mexicano (FMX - Free Report) . FMX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.05, while its industry has an average P/E of 21.36. FMX's Forward P/E has been as high as 26.11 and as low as 14.13, with a median of 20.49, all within the past year.
Investors will also notice that FMX has a PEG ratio of 1.32. 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. FMX's PEG compares to its industry's average PEG of 2.68. Within the past year, FMX's PEG has been as high as 2.18 and as low as 1.22, with a median of 1.47.
Another notable valuation metric for FMX is its P/B ratio of 3.73. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. FMX's current P/B looks attractive when compared to its industry's average P/B of 9.96. Over the past year, FMX's P/B has been as high as 3.98 and as low as 1.47, with a median of 1.74.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FMX has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.87.
Finally, investors should note that FMX has a P/CF ratio of 7.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 22.53. Over the past 52 weeks, FMX's P/CF has been as high as 17.10 and as low as 6.91, with a median of 9.94.
Value investors will likely look at more than just these metrics, but the above data helps show that Fomento Economico Mexicano is likely undervalued currently. And when considering the strength of its earnings outlook, FMX sticks out at as one of the market's strongest value stocks.