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Should Value Investors Buy Amer Movil (AMX) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Amer Movil (AMX - Free Report) . AMX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.15, while its industry has an average P/E of 12.36. Over the last 12 months, AMX's Forward P/E has been as high as 22.20 and as low as 8.70, with a median of 13.69.

Investors will also notice that AMX has a PEG ratio of 0.62. 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. AMX's industry currently sports an average PEG of 1.09. Over the past 52 weeks, AMX's PEG has been as high as 1.63 and as low as 0.53, with a median of 0.86.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMX has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.57.

Finally, investors should note that AMX has a P/CF ratio of 4.80. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.75. AMX's P/CF has been as high as 5.08 and as low as 3.16, with a median of 4.45, all within the past year.

These are just a handful of the figures considered in Amer Movil's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMX is an impressive value stock right now.


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