Stock of the Day

October 13, 2021

América Móvil (AMX)

$14.69
-$0.11 (-0.7%)
Market Cap: $45.41B

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.:

  • América Móvil, S.A.B. de C.V. has a current stock price of $14.62, which is relatively stable and shows potential for growth based on recent analyst ratings.
  • The company has received multiple "buy" ratings from analysts, indicating positive sentiment and potential for stock appreciation.
  • América Móvil has a market capitalization of approximately $44.88 billion, suggesting it is a significant player in the telecommunications sector, which can provide stability to investors.
  • Recent earnings projections suggest a strong revenue of $228.38 billion for the quarter, indicating robust business performance and potential for future profitability.
  • The stock has a consensus price target of $18.94, which implies a potential upside for investors looking for capital gains.

América Móvil Bear Case

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

  • Recent price target cuts by analysts, including a reduction from $17.60 to $17.30 by The Goldman Sachs Group, may indicate a lack of confidence in the stock's near-term performance.
  • The company has a debt-to-equity ratio of 0.90, which suggests a relatively high level of debt compared to equity, potentially increasing financial risk.
  • América Móvil's stock has experienced fluctuations, with a 52-week low of $13.63, indicating volatility that could deter risk-averse investors.
  • Analysts have mixed ratings, with one sell rating and one hold rating, which may create uncertainty about the stock's future performance.
  • The company's price-to-earnings ratio of 30.36 is relatively high, which could suggest that the stock is overvalued compared to its earnings, making it less attractive for value investors.

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