Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified America Movil S.A.B. de C.V as such a stock due to the following factors:
- AMX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $181.4 million.
- AMX has traded 4.7 million shares today.
- AMX is trading at 1.88 times the normal volume for the stock at this time of day.
- AMX crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on AMX:
America Movil, S.A.B. de C.V. provides telecommunications services in the United States, Latin America, and the Caribbean. It offers mobile and fixed voice services, including airtime, local, long-distance services, public telephony services, and network interconnection services. The stock currently has a dividend yield of 1.6%. AMX has a PE ratio of 11.3. Currently there are 2 analysts that rate America Movil S.A.B. de C.V a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for America Movil S.A.B. de C.V has been 7.4 million shares per day over the past 30 days. America Movil S.A.B. de C.V has a market cap of $73.6 billion and is part of the technology sector and telecommunications industry. Shares are down 11.9% year to date as of the close of trading on Friday.
rates America Movil S.A.B. de C.V as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- AMX's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- AMERICA MOVIL SA DE CV has improved earnings per share by 13.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMERICA MOVIL SA DE CV increased its bottom line by earning $1.85 versus $1.51 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $1.85).
- The gross profit margin for AMERICA MOVIL SA DE CV is rather high; currently it is at 55.02%. Regardless of AMX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AMX's net profit margin of 6.90% is significantly lower than the industry average.
- AMX has underperformed the S&P 500 Index, declining 17.26% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- The debt-to-equity ratio is very high at 2.23 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.49, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full America Movil S.A.B. de C.V Ratings Report.