Reasons to Consider Amer Movil (AMX) as a New Investment Opportunity
Zacks Upgrade: Amer Movil (AMX) has been upgraded to a Zacks Rank #2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price.
Earnings Estimates Impact: The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements, making it a valuable tool for investors.
Analyst Consensus: Over the past three months, the Zacks Consensus Estimate for Amer Movil has increased by 6.9%, reflecting analysts' growing confidence in the company's earnings potential.
Market Positioning: The upgrade places Amer Movil in the top 20% of Zacks-covered stocks, suggesting it is well-positioned for potential market-beating returns in the near term.
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- Earnings Announcement Schedule: América Móvil is set to release its Q1 2023 earnings report on April 21 after market close, with consensus EPS estimated at $0.45 and revenue expected to reach $13.37 billion, indicating investor interest in the company's performance.
- Earnings Estimate Changes: Over the last three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates experienced one upward and one downward revision, reflecting market uncertainty regarding the company's future performance.
- Market Reaction Analysis: Despite the upcoming earnings report, the market's response to América Móvil's stock remains muted, lacking clear buy signals, which may affect investor confidence and stock performance.
- Business Expansion Dynamics: A unit of América Móvil is eyeing fiber assets from Azteca and Total Play, indicating the company's intent to expand in the communications services sector, potentially providing new growth opportunities in the future.
- Stock Correction: The stock corrected by 13% as it entered the final phase of its pattern, indicating a sensitive market response to uncertainties, particularly during the early weeks of the Iran conflict.
- Conflict Impact: Most of the decline occurred during the initial stages of the Iran conflict, reflecting the direct influence of geopolitical risks on investor sentiment, which may lead to short-term market volatility.
- March Performance: Despite the overall decline, the stock only fell by 2.1% for the entire month of March, suggesting relative resilience in the market during the conflict, potentially supported by strong fundamentals.
- Investor Confidence: This correction may impact investor confidence, especially in an uncertain international landscape, prompting investors to reassess their strategies to mitigate potential risks.
- Transaction Value: H.I.G. Capital has signed an agreement to sell its portfolio company Desktop S.A. to Claro for R$4.0 billion (approximately $750 million), with a share price of R$20.82, reflecting Desktop's strong market performance and attractiveness.
- User Growth: Since H.I.G.'s acquisition, Desktop's subscriber base has surged from approximately 150,000 to over 1.2 million, serving more than 200 cities, indicating its rapid expansion and market penetration in Brazil's internet service sector.
- Network Infrastructure: Desktop's fiber network spans over 58,000 kilometers, reaching approximately 4.8 million homes and supporting its high-speed connectivity business model, further solidifying its position as a leading ISP in Brazil.
- Strategic Implications: This transaction not only showcases H.I.G.'s ability to create value but also highlights Desktop's potential as a strategic asset in the industry, likely attracting more investor interest in Brazil's telecommunications market.
- Transaction Value: H.I.G. Capital has signed an agreement to sell its portfolio company Desktop to Claro for R$4 billion (approximately $750 million), with a per-share price of R$20.82, reflecting Desktop's strong performance and potential value in the Brazilian market.
- User Growth: Since H.I.G.'s acquisition, Desktop's subscriber base has surged from approximately 150,000 to over 1.2 million, serving more than 200 cities, indicating its rapid expansion and market penetration in Brazil's internet service sector.
- Network Infrastructure: Desktop's fiber network spans over 58,000 kilometers, reaching approximately 4.8 million homes, showcasing its robust capability in delivering high-speed connectivity and further solidifying its market leadership.
- Strategic Implications: This transaction not only highlights H.I.G.'s ability to identify and execute on value creation opportunities but also underscores Desktop's potential as a strategic asset in the industry, likely attracting more investor interest in Brazil's telecommunications market.
- Quant Rating Overview: As the earnings season concludes, investors are focusing on updated quant ratings that provide insights into how companies rank across key factors such as valuation, growth, and profitability, aiding in assessing fundamental changes.
- Top-Rated Companies: Among large-cap communication services firms with market caps over $10 billion, Orange (ORANY) stands out with a quant rating of 4.90, classified as a Strong Buy, indicating a significant strengthening of its fundamentals that may attract more investor interest.
- Low-Rated Companies: In contrast, Fox (FOX) has a quant rating of 1.97, categorized as a Sell, reflecting weak fundamentals that could raise investor concerns about its future performance, potentially impacting its stock price negatively.
- Market Trend Analysis: The shifts in quant ratings not only reveal post-earnings performance but also provide investors with insights for future investment decisions, especially as AI remains a focal point in the 2026 market outlook.
- Acquisition Plan: América Móvil (AMX) is considering acquiring telecom assets from Colombia's Grupo Salinas, which includes the National Fiber Optic Project Network of approximately 20,000 kilometers and the ACC Network of about 12,000 kilometers, significantly enhancing its market position in Colombia.
- Regulatory Application: Comcel, América Móvil's subsidiary in Colombia, has requested authorization from regulators to integrate strategic assets owned by Azteca Comunicaciones and Total Play, indicating the company's proactive approach to business expansion.
- Asset Transfer: The transaction also involves the transfer of contracts for the use and management of the fiber optic network, the contractual position in a commercial trust, as well as assets like infrastructure, towers, and lease agreements, showcasing América Móvil's strategic infrastructure positioning.
- Financial Context: Following a $1.9 billion tax settlement with the Mexican government, Grupo Salinas' founder Salinas Pliego is monetizing assets, and if completed, this acquisition would further solidify América Móvil's influence in the Colombian market.










