America Movil, S.A.B. de C.V. (AMX - Free Report) has decided to roll out the services of its Latin American subsidiary Claro in the United States to extend its footprint in the country. Consequently, Telmex USA, L.L.C. that operates as a subsidiary of the company in the United States will be renamed as Claro Enterprise Solutions, LLC.
Claro Enterprise Solutions will primarily focus on enterprise solutions of businesses of all sizes — from small companies to large multinationals. Based in Florida, the rechristened subsidiary will have a significant presence throughout the country. The strategic move will expand the global presence of Claro and will facilitate America Movil's objective to drive innovations and bring them to the market through integrated communication and information technology services.
Claro, the leading provider of telecommunications services in Latin America, will further aim to leverage its profound experience of serving across 18 countries in the Americas and the Caribbean to better serve the U.S. and international customers. At the same time, customers will also benefit from the seamless integration of America Movil’s global network, operations and service delivery across the Americas and Europe.
America Movil offers integrated telecommunications platforms and enhanced communications solutions with higher data speed transmissions at lower prices. The company continues investing in networks to increase coverage and implement new technologies to optimize network capabilities.
In addition, the company follows an aggressive promotional strategy to increase its penetration in the smartphone market. America Movil is also striving hard to increase its smartphone sales through promotional discounts and subsidized offers. The company has launched 4.5G networks in Brazil, Mexico, Austria and Dominicana that can deliver speed up to 10 times faster than on 4G to enable subscribers experiment voice and video in high definition. This new platform will enable the company to connect millions of devices simultaneously using Narrowband-IOT and Cat-M technologies to expand the universe of the Internet of Things. American Movil is the only carrier to offer 4.5G in the aforementioned countries and will likely introduce this in the rest of the operating countries in 2018.
The stock has outperformed the industry in the past year with an average loss of 7% compared with a decline of 11.6% for the latter.
America Movil currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Motorola Solutions, Inc. (MSI - Free Report) and BlackBerry Limited (BB - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Ubiquiti Networks, Inc. (UBNT - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Motorola has a long-term earnings growth expectation of 8%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 12.1%.
BlackBerry has a long-term earnings growth expectation of 18.6%.
Ubiquiti Networks has a long-term earnings growth expectation of 18.6%. It topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 8.9%.
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