Investing in the stock market and making confident investment decisions are common goals for both new and experienced investors. Many investors have their own preferred methodology to guide their buy and sell decisions. One effective way to identify winning stocks based on your preferred investment approach is by utilizing Zacks Style Scores. These scores rate stocks according to three widely-followed investing types: value, growth, and momentum.
Value investors focus on finding stocks at good prices before the broader market recognizes their true value. The Value Style Score evaluates stocks based on ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to identify the most attractive and discounted stocks.
One such stock is America Movil (AMX). Headquartered in Mexico City, America Movil is the leading provider of integrated telecommunications services in Latin America. With operations in 25 countries in Latin America, the United States, and Central and Eastern Europe, the company offers enhanced communications solutions. As of June 30, 2023, America Movil had 376.6 million access lines, including 303.2 million wireless subscribers and 73.4 million fixed-line revenue generating units (RGUs).
Established in September 2000 as a spin-off from Teléfonos de México (Telmex), America Movil has rapidly expanded through acquisitions to become a major wireless carrier in the Latin American region.
With a Zacks Rank #3 (Hold), America Movil holds an impressive Value Style Score of A and a VGM Score of A. Compared to the average P/E ratio of 10.8X for the Wireless Non-US industry, America Movil trades at a forward P/E of 11X. The stock also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 4.7X, and a Price/Sales ratio of 1.3X.
Earnings are also an important factor for value investors. Four analysts revised their earnings estimates for America Movil upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $1.66 per share for 2023. The stock has an average earnings surprise of 15.3%.
With its strong valuation and earnings metrics, along with a good Zacks Rank and top-tier Value and VGM Style Scores, investors should consider adding America Movil to their portfolios.