Fomento Economico Mexicano (NYSE:FMX) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Fomento Economico Mexicano (NYSE:FMX) from a "hold" to a "strong-buy" rating in its latest report.
• Several major banks (JPMorgan, Goldman Sachs, UBS) have recently raised price targets to roughly $117–$128, and the MarketBeat-derived analyst consensus is a Moderate Buy with an average target of $113.17.
• FMX is trading near its 12‑month high (opened at $120), has a market cap of $41.46 billion and a trailing P/E of 42.10, indicating a relatively elevated valuation amid the upgrades.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Thursday,Zacks.com reports.

FMX has been the subject of a number of other research reports. JPMorgan Chase & Co. increased their price objective on shares of Fomento Economico Mexicano from $98.00 to $117.00 and gave the company a "neutral" rating in a research note on Monday, April 20th. Wall Street Zen upgraded shares of Fomento Economico Mexicano from a "hold" rating to a "buy" rating in a research note on Saturday, April 25th. Weiss Ratings restated a "hold (c-)" rating on shares of Fomento Economico Mexicano in a research note on Tuesday, April 21st. The Goldman Sachs Group increased their target price on Fomento Economico Mexicano from $113.00 to $128.00 and gave the stock a "buy" rating in a report on Wednesday, February 11th. Finally, UBS Group increased their target price on Fomento Economico Mexicano from $109.00 to $122.00 and gave the stock a "buy" rating in a report on Friday, March 20th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $113.17.

Fomento Economico Mexicano Price Performance

Shares of FMX stock opened at $120.00 on Thursday. The stock has a 50 day moving average of $111.59 and a two-hundred day moving average of $104.63. The company has a current ratio of 1.35, a quick ratio of 1.02 and a debt-to-equity ratio of 0.39. Fomento Economico Mexicano has a 12 month low of $83.08 and a 12 month high of $120.65. The company has a market capitalization of $41.46 billion, a P/E ratio of 42.10, a P/E/G ratio of 0.81 and a beta of 0.42.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last announced its quarterly earnings data on Tuesday, March 31st. The company reported $2.43 EPS for the quarter. Fomento Economico Mexicano had a return on equity of 7.63% and a net margin of 3.40%.The company had revenue of $11.61 billion during the quarter. As a group, equities analysts expect that Fomento Economico Mexicano will post 4.87 EPS for the current year.

Insider Activity

In related news, Director Garza Alfonso Garza sold 52,311 shares of the stock in a transaction dated Friday, March 27th. The shares were sold at an average price of $11.19, for a total transaction of $585,360.09. Following the completion of the sale, the director owned 1,128,453 shares in the company, valued at $12,627,389.07. This trade represents a 4.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In the last ninety days, insiders have sold 261,575 shares of company stock worth $2,795,188. Company insiders own 5.68% of the company's stock.

Institutional Investors Weigh In On Fomento Economico Mexicano

A number of hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC increased its holdings in Fomento Economico Mexicano by 19.0% during the 1st quarter. AQR Capital Management LLC now owns 6,072 shares of the company's stock valued at $593,000 after purchasing an additional 969 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in Fomento Economico Mexicano by 2,006.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 337 shares of the company's stock valued at $35,000 after purchasing an additional 321 shares in the last quarter. New York State Common Retirement Fund acquired a new stake in Fomento Economico Mexicano during the 2nd quarter valued at $429,000. EverSource Wealth Advisors LLC increased its holdings in Fomento Economico Mexicano by 61.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,156 shares of the company's stock valued at $119,000 after purchasing an additional 438 shares in the last quarter. Finally, Jump Financial LLC acquired a new stake in Fomento Economico Mexicano during the 2nd quarter valued at $504,000. Institutional investors and hedge funds own 61.00% of the company's stock.

Fomento Economico Mexicano Company Profile

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Mexican multinational company active primarily in the retail and beverage sectors. Headquartered in Monterrey, Mexico, FEMSA's operations span convenience store retailing, beverage bottling and distribution, and related logistics and consumer services. The company's business model combines high-frequency retail outlets with large-scale beverage production and a regional supply chain network.

FEMSA Comercio, the company's retail arm, operates a large chain of convenience stores under the OXXO brand and has expanded its retail footprint with complementary formats and services.

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