FMX Should I Buy
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Fomento Economico Mexicano SAB de CV (FMX) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive news sentiment, and solid technical indicators make it a suitable choice for long-term growth.
The stock has bullish moving averages (SMA_5 > SMA_20 > SMA_200), a positive MACD histogram (0.577), and RSI_6 at 67.226, which is neutral but leaning towards overbought. Key support and resistance levels are at 115.153 (pivot), 117.883 (R1), and 112.424 (S1). The stock is currently trading near resistance levels, suggesting potential for upward movement.
Dividend yield of 6.72% with a history of tripling over the past decade.
Strong balance sheet with $7.38 billion in cash and short-term investments.
Restructuring plan expected to save $576.6 million.
Oxxo convenience stores exceeding expectations in Mexico and expanding in Brazil.
High customer loyalty among younger demographics (15-35 years).
Gross margin dropped by 4.88% YoY in Q4
Analysts' price targets are nearing the current price, limiting immediate upside potential.
In Q4 2025, revenue increased by 15.61% YoY to $12.03 billion, net income surged by 73.79% YoY to $465.25 million, and EPS rose by 85.71% YoY to 0.13. However, gross margin declined by 4.88% YoY to 41.54%.
Analysts are generally positive on FMX. UBS recently raised the price target to $122 with a Buy rating, while Barclays increased the target to $118 with an Equal Weight rating. The stock has seen consistent upward revisions in price targets, reflecting optimism.
