Is Amer Movil (AMX) a Great Value Stock Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Amer Movil (AMX). AMX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We also note that AMX holds a PEG ratio of 0.91. 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. AMX's PEG compares to its industry's average PEG of 0.96. AMX's PEG has been as high as 1.63 and as low as 0.53, with a median of 0.80, all within the past year.

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. AMX has a P/S ratio of 0.82. This compares to its industry's average P/S of 1.23.

Finally, investors will want to recognize that AMX has a P/CF ratio of 4.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.75. Over the past 52 weeks, AMX's P/CF has been as high as 5.08 and as low as 3.16, with a median of 4.50.

These are just a handful of the figures considered in Amer Movil's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMX is an impressive value stock right now.


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