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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Fomento Economico Mexicano (FMX - Free Report) . FMX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 14.50 right now. For comparison, its industry sports an average P/E of 22.58. Over the last 12 months, FMX's Forward P/E has been as high as 26.50 and as low as 14.50, with a median of 20.79.
We also note that FMX holds a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FMX's industry currently sports an average PEG of 2.80. Within the past year, FMX's PEG has been as high as 2.18 and as low as 1.22, with a median of 1.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.71. This compares to its industry's average P/S of 1.76.
Finally, we should also recognize that FMX has a P/CF ratio of 7.15. 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 21.97. FMX's P/CF has been as high as 17.10 and as low as 6.91, with a median of 10.36, all within the past year.
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Fomento Economico Mexicano (FMX - Free Report) . FMX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 14.50 right now. For comparison, its industry sports an average P/E of 22.58. Over the last 12 months, FMX's Forward P/E has been as high as 26.50 and as low as 14.50, with a median of 20.79.
We also note that FMX holds a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FMX's industry currently sports an average PEG of 2.80. Within the past year, FMX's PEG has been as high as 2.18 and as low as 1.22, with a median of 1.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.71. This compares to its industry's average P/S of 1.76.
Finally, we should also recognize that FMX has a P/CF ratio of 7.15. 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 21.97. FMX's P/CF has been as high as 17.10 and as low as 6.91, with a median of 10.36, all within the past year.
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.