Stock of the Day

América Móvil (AMX)

$16.85

+$0.19 (+1.1%)

Market Cap: $51.13B

About América Móvil

América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services.

It provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging and other wireless entertainment, and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions to small businesses and large corporations; and cable and satellite television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to corporate customers. The company was incorporated in 2000 and is based in Mexico City, Mexico.

América Móvil Bull Case

Here are some ways that investors could benefit from investing in América Móvil, S.A.B. de C.V.:

• The current stock price is around $15.47, which is near its fifty-day moving average, indicating potential stability in the short term.
• América Móvil, S.A.B. de C.V. reported a revenue of $11.36 billion for the latest quarter, exceeding analysts' expectations, which suggests strong operational performance.
• The company has a relatively low debt-to-equity ratio of 0.90, indicating a balanced approach to leveraging, which can be attractive to risk-averse investors.
• Analysts have a consensus rating of "Moderate Buy" for the stock, with an average target price of $17.22, suggesting potential upside for investors.
• Recent upgrades from analysts, including a boost from HSBC to a "buy" rating, reflect positive sentiment and confidence in the company's growth prospects.

América Móvil Bear Case

Investors should be bearish about investing in América Móvil, S.A.B. de C.V. for these reasons:

• The company reported earnings per share (EPS) of $0.30, which missed analysts' consensus estimates, indicating potential challenges in meeting growth expectations.
• América Móvil has a quick ratio of 0.67, which is below 1, suggesting potential liquidity issues that could affect its ability to cover short-term obligations.
• Despite a strong revenue report, the net margin of 3.25% indicates that profitability may be under pressure, which could concern investors looking for robust returns.
• Some analysts have downgraded their price targets, such as Scotiabank reducing theirs from $17.30 to $13.70, which may signal caution regarding the stock's future performance.
• The company's beta of 0.82 suggests lower volatility compared to the market, which may not appeal to investors seeking high-growth opportunities.