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Here's Why Amer Movil (AMX) is a Strong Value Stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Amer Movil (AMX)

Based in Mexico City, America Movil is the leading provider of integrated telecommunications services in Latin America. It offers enhanced communications solutions in 25 countries in Latin America, the United States and Central and Eastern Europe. As of Dec 31, 2021, the company had a total of 367 million access lines, which includes 287 million wireless subscribers and 80.5 million fixed-line revenue generating units (RGUs). America Movil was established in September 2000 as a spin-off from Teléfonos de México (Telmex), the dominant provider of local and long-distance telephone services in Mexico. Since inception, the company has expanded rapidly through acquisitions to become a leading Latin American regional wireless carrier.

AMX is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 15.3X for the current fiscal year compared to the Wireless Non-US industry's P/E of 11.3X. Additionally, AMX has a PEG Ratio of 0.6 and a Price/Cash Flow ratio of 5.5X. Value investors should also note AMX's Price/Sales ratio of 1.3X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.05 to $1.26 per share. AMX has an average earnings surprise of 20.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AMX to their portfolios.


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