Log in

Fomento Economico Mexicano SAB (NYSE:FMX) Downgraded by Zacks Investment Research to "Strong Sell"

Tuesday, June 30, 2020 | MarketBeat

Fomento Economico Mexicano SAB (NYSE:FMX) was downgraded by Zacks Investment Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday, Zacks.com reports. They currently have a $66.00 price objective on the stock. Zacks Investment Research's price objective suggests a potential upside of 6.02% from the stock's previous close.

According to Zacks, "Shares of FEMSA have lagged the industry in the past three months. The company started first-quarter 2020 on a strong note, while the coronavirus outbreak began hurting performance in late March. While most of the company’s operations are operational, the effects of the restrictions are showing on reduced traffic trends. Further, FEMSA Comercio’s Fuel Division is the most exposed to the current coronavirus situation due to reduced mobility and social distancing, which hurt the segments first quarter results. However, FEMSA reported strong first-quarter 2020 results, driven by robust top line and operating income growth. Top line growth was mainly fueled by gains across almost all operations. FEMSA has intensified digital and technology-driven initiatives across operations to provide contactless purchase options to customers."

A number of other equities analysts have also weighed in on the stock. Bank of America lowered shares of Fomento Economico Mexicano SAB from a "neutral" rating to an "underperform" rating in a research report on Monday, May 4th. Barclays restated a "buy" rating and issued a $70.00 price objective on shares of Fomento Economico Mexicano SAB in a research report on Thursday, April 9th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and two have issued a buy rating to the company. The company presently has an average rating of "Hold" and an average price target of $82.67.

FMX traded down $0.44 during trading on Tuesday, hitting $62.25. 17,138 shares of the company's stock were exchanged, compared to its average volume of 620,196. The company has a quick ratio of 1.34, a current ratio of 1.60 and a debt-to-equity ratio of 0.61. The business's 50 day moving average is $66.15 and its two-hundred day moving average is $76.77. Fomento Economico Mexicano SAB has a fifty-two week low of $55.40 and a fifty-two week high of $98.97. The stock has a market cap of $21.98 billion, a P/E ratio of 16.42, a PEG ratio of 5.07 and a beta of 0.80.

Fomento Economico Mexicano SAB (NYSE:FMX) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.05) by $1.34. The business had revenue of $6.17 billion during the quarter, compared to the consensus estimate of $6.17 billion. Fomento Economico Mexicano SAB had a net margin of 5.40% and a return on equity of 8.21%. On average, sell-side analysts forecast that Fomento Economico Mexicano SAB will post 2.55 earnings per share for the current year.

Several hedge funds have recently made changes to their positions in FMX. Marshall Wace LLP bought a new position in Fomento Economico Mexicano SAB in the 1st quarter worth about $36,000. Lindbrook Capital LLC increased its holdings in Fomento Economico Mexicano SAB by 825.5% in the 1st quarter. Lindbrook Capital LLC now owns 472 shares of the company's stock worth $29,000 after acquiring an additional 421 shares in the last quarter. Cornerstone Advisors Inc. increased its holdings in Fomento Economico Mexicano SAB by 23.5% in the 1st quarter. Cornerstone Advisors Inc. now owns 1,220 shares of the company's stock worth $74,000 after acquiring an additional 232 shares in the last quarter. Signaturefd LLC increased its holdings in Fomento Economico Mexicano SAB by 10.5% in the 1st quarter. Signaturefd LLC now owns 1,901 shares of the company's stock worth $115,000 after acquiring an additional 181 shares in the last quarter. Finally, UBS Asset Management Americas Inc. purchased a new stake in Fomento Economico Mexicano SAB in the 4th quarter worth approximately $208,000. Hedge funds and other institutional investors own 18.75% of the company's stock.

About Fomento Economico Mexicano SAB

Fomento Económico Mexicano, SAB. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages, including sparkling beverages; and waters, juices, coffee, tea, sports and energy drinks, and dairy and plant-based protein beverages.

Recommended Story: Cost of Equity

Get a free copy of the Zacks research report on Fomento Economico Mexicano SAB (FMX)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to [email protected]

7 Boring Stocks That Are Winners

Some stocks just don’t get much attention during bull markets. They can be too boring for a growth portfolio. But when the market is going through a period of volatility and uncertainty, these tried-and-true performers have a way of making their way back to popularity.

And there are good reasons for this. First, many of these boring stocks pay dividends. This simply means that the company will reward shareholders simply for holding on to its stock. Dividend stocks aren’t designed to make you rich quickly. However they are designed to offer investors an amount of predictability. And we could all use a little bit of that right now.

And predictable stocks can also help investors manage risk. It can be fun to invest in speculative stocks. But they include a risk premium. When these stocks go up (as they sometimes do) they usually have a return that exceeds the broader market. But when they go down (and they usually do) they usually go down more than the broader market.

But “boring” stocks tend to move closer to the broader market. If you want an analogy from current events, these stocks flatten the curve. They won’t soar as high as riskier stocks, but they won’t sink as low either. And right now, preserving capital should be the number one item on every investor’s checklist.

With that in mind, we’ve created this special presentation to highlight 7 conservative stocks that can help investors win this moment in time. Many of them pay dividends; some do not. But they all have solid fundamental reasons to own them now.

View the "7 Boring Stocks That Are Winners".

Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.