FMX Should I Buy
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Fomento Economico Mexicano SAB de CV (FMX) is not a strong buy at the moment for a beginner investor with a long-term focus. While the stock shows bullish technical indicators and a potential for moderate growth in the next month, the lack of significant positive catalysts, declining financial performance, and neutral trading sentiment suggest it is better to hold off on investing right now.
The technical indicators are moderately bullish. The MACD is positive at 0.586, suggesting upward momentum, and the moving averages (SMA_5 > SMA_20 > SMA_200) indicate a bullish trend. However, the RSI at 74.727 is in the neutral zone, and the stock is trading close to its resistance level (R1: 114.289).
The stock has a 70% chance of gaining 4.16% in the next week and 4.46% in the next month based on historical patterns. Analysts have raised the price target to $116, indicating potential upside.
No significant news or event-driven catalysts in the recent week. Financial performance in Q3 2025 showed a significant decline in net income (-58.39% YoY) and EPS (-55.56% YoY), which may deter long-term investors. Hedge funds and insiders are neutral, showing no strong buying interest.
In Q3 2025, revenue increased by 10.90% YoY to $11.53 billion, but net income dropped significantly by -58.39% YoY to $129.69 million. EPS also declined by -55.56% YoY to 0.04, and gross margin slightly decreased to 39.93%.
Barclays analyst Benjamin Theurer raised the price target to $116 from $105 while maintaining an Equal Weight rating. This indicates a cautious optimism but not a strong buy recommendation.
