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Is Fomento Economico Mexicano (FMX) a Great Value Stock Right Now?
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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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Fomento Economico Mexicano (FMX - Free Report) is a stock many investors are watching right now. FMX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 18.10 right now. For comparison, its industry sports an average P/E of 22.54. Over the past year, FMX's Forward P/E has been as high as 27.13 and as low as 18.06, with a median of 21.98.
FMX is also sporting a PEG ratio of 1.22. 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. FMX's industry has an average PEG of 2.88 right now. Over the last 12 months, FMX's PEG has been as high as 2.93 and as low as 1.22, with a median of 1.49.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FMX has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.05.
Finally, investors should note that FMX has a P/CF ratio of 7.88. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.38. Over the past 52 weeks, FMX's P/CF has been as high as 18.43 and as low as 7.26, with a median of 10.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fomento Economico Mexicano is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FMX feels like a great value stock at the moment.
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Is Fomento Economico Mexicano (FMX) a Great Value Stock Right Now?
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Fomento Economico Mexicano (FMX - Free Report) is a stock many investors are watching right now. FMX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 18.10 right now. For comparison, its industry sports an average P/E of 22.54. Over the past year, FMX's Forward P/E has been as high as 27.13 and as low as 18.06, with a median of 21.98.
FMX is also sporting a PEG ratio of 1.22. 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. FMX's industry has an average PEG of 2.88 right now. Over the last 12 months, FMX's PEG has been as high as 2.93 and as low as 1.22, with a median of 1.49.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FMX has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.05.
Finally, investors should note that FMX has a P/CF ratio of 7.88. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.38. Over the past 52 weeks, FMX's P/CF has been as high as 18.43 and as low as 7.26, with a median of 10.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fomento Economico Mexicano is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FMX feels like a great value stock at the moment.