Industry Overview - The Zacks Wireless Non-US industry is positioned to benefit from strong demand trends driven by the increasing need for connectivity in the digital age, despite facing challenges such as high capital expenditures, margin erosion, and supply chain disruptions [1][5] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Growth Opportunities - Companies like América Móvil, TIM, and SK Telecom are expected to capitalize on long-term growth opportunities due to rising demand for scalable infrastructure and the proliferation of IoT and 5G deployment [2] - The industry is focusing on network optimization to meet the growing demand for coverage, speed, and quality, necessitating significant investments in advanced networking architecture [4] Challenges - The industry is currently facing challenges such as a shortage of chips, high raw material prices due to geopolitical conflicts, and increased competition from over-the-top service providers, which are impacting profitability [5] - Price-sensitive competition is expected to intensify, affecting customer retention and overall financial results [5] Strategic Focus - Industry players are taking steps to enhance subscriber growth and manage churn, including geographical expansion and strategic acquisitions [6] - Companies are adopting unlimited plans to improve average revenue per user and are focusing on increasing customer loyalty and handset connections [6] Market Performance - The Zacks Wireless Non-US industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500, gaining 51.7% over the past year compared to 16.5% and 22.9% for the S&P 500 and sector, respectively [9] - The industry currently holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 Zacks industries, indicating positive near-term prospects [7][8] Valuation Metrics - The industry has a trailing 12-month EV/EBITDA ratio of 4.37X, significantly lower than the S&P 500's 18.88X and the sector's 19.01X, suggesting potential undervaluation [12] Notable Companies - **SK Telecom**: A leading telecommunications provider in South Korea, focusing on 5G and AI technologies, with a stock gain of 38.2% over the past year and a Zacks Rank of 1 (Strong Buy) [14] - **América Móvil**: The largest telecommunications provider in Latin America, with a stock gain of 47.1% and a Zacks Rank of 2 (Buy) [17] - **TIM**: A major communication service provider in Brazil, focusing on 5G rollout and achieving a stock gain of 76% over the past year, with a long-term earnings growth expectation of 18.7% [20]

The investment thesis for América Móvil, S.A.B. de C.V. ( AMX ) remains a curious one. On one hand, the company is well-run by most metrics and continues to perform relatively well across itsAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I ...

Core Viewpoint - The investment thesis for America Movil (AMX) presents a complex scenario, as the company is well-managed and shows strong performance in the Latin American market [1] Company Performance - America Movil continues to perform relatively well across its large Latin American operations, indicating effective management and operational efficiency [1]

Telecom Industry Overview - Telecom stocks, including AT&T, Dycom Industries, and America Movil, are highlighted as key companies to watch due to their significant trading volume recently [2] - These stocks are valued for their steady cash flows and dividends but are sensitive to capital expenditures, regulatory changes, and technological shifts in connectivity consumption [2] AT&T (T) - AT&T, Inc. operates as a holding company providing telecommunications and technology services through its Communications and Latin America segments [3] - The Communications segment offers wireless, wireline telecom, and broadband services to both businesses and consumers in the US and globally [3] Dycom Industries (DY) - Dycom Industries, Inc. specializes in providing contracting services to the telecommunications infrastructure and utility industries in the US [3] - The company offers engineering services for telecommunications providers, including planning and design for various cable systems and wireless networks [3] America Movil (AMX) - América Móvil, S.A.B. de C.V. provides telecommunications services across Latin America and internationally [4] - The company offers a range of services including wireless and fixed voice services, data services, and value-added services such as Internet access and mobile payment solutions [4]

América Móvil SAB de CV (NYSE:AMX) ranks among the best telecom stocks to invest in. On December 11, Bank of America Securities began coverage of América Móvil SAB de CV (NYSE:AMX), rating it Neutral and setting a $26 price target on the company’s shares. The firm stated that Latin American telecommunications entered a positive period in 2023-2024, with capital expenditures relaxing following 5G investments and industry consolidation strengthening pricing power. BofA Securities noted that improved cash g ...

Core Insights - Three stocks are highlighted with strong income characteristics and a buy rank for investors to consider on December 18 Group 1: Norwood Financial Corp. (NWFL) - This bank holding company for Wayne Bank has seen a 16.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - The company has a dividend yield of 4.2%, which is higher than the industry average of 2.4% [1] Group 2: America Movil (AMX) - This telecommunications services provider has experienced a 7.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - The company offers a dividend yield of 2.7%, slightly above the industry average of 2.6% [2] Group 3: Garrett Motion Inc. (GTX) - This company, which specializes in turbocharger and electric-boosting technology for light and commercial vehicle original equipment manufacturers, has seen an 8.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - The company has a dividend yield of 1.9%, compared to an industry average of 0.0% [3]

A downtrend has been apparent in Amer Movil (AMX) lately with too much selling pressure. The stock has declined 10.9% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. Th ...

Core Viewpoint - Amer Movil (AMX) has been upgraded to a Zacks Rank 2 (Buy), reflecting an upward trend in earnings estimates, which significantly influences stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which is a critical factor for stock price movements [2][3]. - Rising earnings estimates for Amer Movil indicate an improvement in the company's underlying business, likely leading to an increase in stock price [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9]. Recent Earnings Estimate Revisions for Amer Movil - For the fiscal year ending December 2025, Amer Movil is expected to earn $1.51 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 6.9% over the past three months [7].

Industry Overview - The Zacks Wireless Non-US industry is facing challenges such as high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions, and geopolitical conflicts, but healthy demand trends in the digital age are expected to benefit the industry long-term [1][4] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Current Challenges - Increased infrastructure spending has compromised short-term margins due to aggressive promotional expenses and a decline in linear TV subscribers, leading firms to diversify from legacy telecom services [4] - High raw material prices and geopolitical tensions have affected profitability, with price-sensitive competition expected to intensify [6] Future Prospects - Companies like América Móvil, Telia, and TIM are positioned to benefit from rising demand for scalable infrastructure and accelerated 5G deployment [2] - The industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, gaining 43.1% over the past year compared to 16.3% and 27.3% respectively [9] Valuation Metrics - The industry has a trailing 12-month Price/Book ratio of 1.13X, significantly lower than the S&P 500's 8.33X and the sector's 10.31X [12] Notable Companies - **América Móvil**: Leading telecommunications provider in Latin America, with a 54.1% stock gain over the past year and a Zacks Rank 1 (Strong Buy) [15] - **Telia**: Provides mobile services in Northern Europe, with a 39.3% stock gain and a Zacks Rank 3 (Hold) [18] - **TIM**: Focused on 5G rollout in Brazil, with a 63% stock gain and a Zacks Rank 1 (Strong Buy) [20]

Core Viewpoint - America Movil, S.A.B. de C.V. is highlighted as a strong investment opportunity due to its leading position in the Latin American telecommunications market and a significant increase in earnings estimates [1] Company Summary - America Movil is the leading provider of integrated telecommunications services in Latin America [1] - The company has a Zacks Rank of 1, indicating a Strong Buy recommendation [1] - The Zacks Consensus Estimate for America Movil's current year earnings has increased by 12.6% over the last 60 days [1]