TBBB Should I Buy
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Based on the data provided, BBB Foods Inc (TBBB) is not a strong buy for a beginner, long-term investor at this moment. While the technical indicators show some bullish signs, the company's financial performance is poor, with significant losses in net income and EPS. Additionally, the recent downgrade by Itau BBA and lack of positive news or strong trading signals suggest caution. The investor may consider monitoring the stock for better entry points or improved financial performance.
The technical indicators are mixed. The MACD is above 0 and positively contracting, which is slightly bullish. The RSI is neutral at 50.559, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot level of 37.099, with key resistance at 39.074 and support at 35.124.
The company is positioned to drive growth in the hard discount industry, with Morgan Stanley projecting a 15% store count CAGR and revenue per store tracking above inflation. Technical indicators show bullish moving averages.
The company's financial performance is weak, with a significant drop in net income (-652.80% YoY) and EPS (-752.91% YoY). Analysts have mixed views, with a recent downgrade by Itau BBA citing valuation concerns. No recent news or congress trading data to suggest positive sentiment.
In Q3 2025, revenue increased by 36.71% YoY to $20.28B. However, net income dropped significantly to -$1.42B (-652.80% YoY), and EPS fell to -12.34 (-752.91% YoY). Gross margin improved slightly to 16.16%, up 2.28% YoY.
Analysts have mixed views. Morgan Stanley recently upgraded the stock to Overweight with a price target of $46, citing growth potential in the hard discount industry. However, Itau BBA downgraded the stock to Market Perform with a $42 price target, citing valuation concerns.
