Here's Why Investors Should Buy America Movil (AMX) Stock
Zacks Investment Research | Sep 13, 2017 10:49PM ET
On Sep 14, we issued an updated research report on Mexican telecom behemoth, America Movil SAB (NYSE:AMX) .
The price performance of the company has been encouraging for the last six months. The stock price increased 38.8% compared with the industry ’s gain of 3.7% over the same time period.
This Zacks Rank #2 (Buy) company, recently received regulatory approval from Argentina's National Communications Agency (Enacom) to enter into the pay-TV market of that country. Notably, the company has established both wireless and wireline operators in Argentina.
Furthermore, America Movil has been steadily enriching its spectrum portfolio for the last couple of years. Lately, it acquired 60 MHz of wireless spectrum (airwave) in the 2.5 GHz band from Grupo MVS. In May, Mexican telecom regulator, Federal Telecommunications Institute, approved this deal. However, the financial terms are yet to be disclosed. Going forward, we believe this buyout will enhance the company’s high-speed data service.
Meanwhile, this telecom behemoth’s continuous participation in spectrum auctions for the deployment of 4G LTE services and expansion of 3G footprints looks impressive. It launched also fourth-generation mobile services in 11 cities across Mexico and introduced LTE services in Brazil where it currently covers 18 cities.
Moreover, America Movil’s wireless wing Telcel entered into a wireless roaming agreement with AT&T Inc. (NYSE:T) for its Mexican users lately. It should be note that Telcel is the undisputed leader in the Mexican wireless market with substantial market share.
Key Picks
Investors interested in the broader Computer and Technology sector may consider better-ranked stocks like Arista Networks, Inc. (NYSE:ANET) and Applied Materials, Inc. (NYSE:T) .
Arista Networks and Applied Materials currently sports a Zacks Rank #1 (Strong Buy) and projects earnings per share growth rate of 19.3% and 17.1%, respectively, over the next three to five years. You can see .
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Get The News You Want
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.