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 America Movil S.A.B. de C.V ( AMX) as a "storm the castle" (crossing above 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 $177.6 million.
- AMX has traded 20,419 shares today.
- AMX is trading at 1.77 times the normal volume for the stock at this time of day.
- AMX crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success. EXCLUSIVE OFFER: Get the inside scoop on opportunities in AMX with the Ticky from Trade-Ideas. See the FREE profile for AMX NOW at Trade-Ideas 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 11.7. Currently there are 2 analysts that rate America Movil S.A.B. de C.V a buy, 1 analyst rates it a sell, and 7 rate it a hold. The average volume for America Movil S.A.B. de C.V has been 6.9 million shares per day over the past 30 days. America Movil S.A.B. de C.V has a market cap of $75.9 billion and is part of the technology sector and telecommunications industry. Shares are down 9.1% year to date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates America Movil S.A.B. de C.V as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, AMERICA MOVIL SA DE CV's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for AMERICA MOVIL SA DE CV is rather high; currently it is at 54.98%. 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, the net profit margin of 8.38% trails the industry average.
- AMX, with its decline in revenue, underperformed when compared the industry average of 0.9%. Since the same quarter one year prior, revenues fell by 11.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net income has significantly decreased by 52.2% when compared to the same quarter one year ago, falling from $2,523.67 million to $1,206.43 million.
- The debt-to-equity ratio is very high at 2.35 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, AMX maintains a poor quick ratio of 0.71, which illustrates the inability to avoid short-term cash problems.
- You can view the full America Movil S.A.B. de C.V Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.