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Here's Why Investors Should Buy America Movil (AMX) Stock

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On Sep 14, we issued an updated research report on Mexican telecom behemoth, America Movil SAB (AMX - Free Report) .

The price performance of the company has been encouraging for the last six months. The stock price increased 38.8% compared with the industry’s gain of 3.7% over the same time period.

 

 

This Zacks Rank #2 (Buy) company, recently received regulatory approval from Argentina's National Communications Agency (Enacom) to enter into the pay-TV market of that country. Notably, the company has established both wireless and wireline operators in Argentina.

Furthermore, America Movil has been steadily enriching its spectrum portfolio for the last couple of years. Lately, it acquired 60 MHz of wireless spectrum (airwave) in the 2.5 GHz band from Grupo MVS. In May, Mexican telecom regulator, Federal Telecommunications Institute, 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.

Meanwhile, this telecom behemoth’s continuous participation in spectrum auctions for the deployment of 4G LTE services and expansion of 3G footprints looks impressive. It launched also fourth-generation mobile services in 11 cities across Mexico and introduced LTE services in Brazil where it currently covers 18 cities.

Moreover, America Movil’s wireless wing Telcel entered into a wireless roaming agreement with AT&T Inc. (T - Free Report) for its Mexican users lately. It should be note that Telcel is the undisputed leader in the Mexican wireless market with substantial market share.

Key Picks

Investors interested in the broader Computer and Technology sector may consider better-ranked stocks like Arista Networks, Inc. (ANET - Free Report) and Applied Materials, Inc. (AMAT - Free Report) .

Arista Networks and Applied Materials currently sports a Zacks Rank #1 (Strong Buy) and projects earnings per share growth rate of 19.3% and 17.1%, respectively, over the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.

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