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]

Company Overview - América Móvil SAB de CV (NYSE:AMX) is a major Mexican telecommunications company specializing in communications, information technology, and digital content, operating in 22 countries across Latin America and Europe [4] Investment Outlook - Bank of America Securities initiated coverage of América Móvil, rating it Neutral with a price target of $26, highlighting a positive outlook for Latin American telecommunications in 2023-2024 due to relaxed capital expenditures and strengthened pricing power from industry consolidation [1] - Improved cash generation in the telecommunications industry has led to increased dividends for investors, with América Móvil having paid dividends for the past 25 years, reflecting a favorable trend for telecom companies in Latin America [2] Strategic Developments - América Móvil has secured broadcasting rights for the Olympics in Latin America, maintaining rights in 16 regions through to the Brisbane 2032 games, covering major events including the Winter Olympics in 2026 and 2030, and the Summer Olympics in 2028 and 2032 [3]

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]

Core Viewpoint - Amer Movil (AMX) has experienced a significant downtrend, with a 10.9% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - AMX's current RSI reading is 29.38, suggesting that the heavy selling pressure may be exhausting, indicating a possible price rebound [5]. - The RSI helps investors identify potential entry points for stocks that have fallen below their fair value due to excessive selling [3]. Group 2: Fundamental Analysis - Analysts have shown strong consensus in raising earnings estimates for AMX, with a 0.4% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - AMX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

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]

Core Viewpoint - America Movil has shown a positive trend in its stock performance, with shares increasing by approximately 3.2% since the last earnings report, outperforming the S&P 500 [1][2]. Financial Performance - For Q3 2025, America Movil reported a net income per ADR of 40 cents, significantly up from 11 cents in the same quarter last year, exceeding the Zacks Consensus Estimate of 36 cents [3]. - The net income for the quarter was Mex$22,700 million, compared to a net loss of Mex$6,427 million in the prior year, with comprehensive financing costs decreasing by 54.5% to Mex$12,899 million [4]. - Total quarterly revenues rose by 4.2% to Mex$232,919 million, driven by growth in both Service and Equipment segments [5]. Subscriber Growth - America Movil gained 235,000 wireless subscribers in Q3, including 98,000 postpaid and 136,000 prepaid subscribers, with significant contributions from Brazil and Colombia [6]. Regional Performance - Colombia experienced a revenue increase of 5.9%, with mobile service revenue growth at 7.8% due to the strong performance of its 5G network [8]. - Argentina's revenues grew by 7% year over year, supported by a recovering economy and strong mobile service revenue growth of 12% [9]. - Central America saw a revenue increase of 10.8%, while other regions like Brazil and Peru also reported positive growth [10]. Cost and Profitability - Total costs and expenses increased by 3.8% to Mex$139,096 million, while EBITDA rose by 5.2% to Mex$93,823 million, maintaining an EBITDA margin of 40.3% [11]. - The operating profit increased by 5.6% to Mex$50.1 billion [12]. Liquidity Position - As of September 30, 2025, America Movil had Mex$96,588 million in cash and short-term investments, against long-term debt of Mex$463,103 million [13]. Market Sentiment and Outlook - There has been a significant upward trend in earnings estimates, with a consensus estimate shift of 152.94% [14]. - America Movil holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [16].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Amer Movil (AMX) - Amer Movil currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - The stock has shown significant price increases, with a 22.04% rise over the past quarter and a 52.75% increase over the last year, outperforming the S&P 500's gains of 6.64% and 15.78% respectively [6] Price Performance - Over the past week, AMX shares increased by 2.2%, while the Zacks Wireless Non-US industry declined by 0.92% [5] - The monthly price change for AMX is 8.12%, compared to the industry's performance of 0.58% [5] Trading Volume - AMX has an average 20-day trading volume of 1,687,459 shares, which is a useful indicator of market interest and can signal bullish or bearish trends [7] Earnings Outlook - In the past two months, two earnings estimates for AMX have been revised upwards, increasing the consensus estimate from $1.35 to $1.52 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [9] Conclusion - Given the positive momentum indicators and earnings outlook, Amer Movil is positioned as a strong buy candidate for investors seeking short-term opportunities [11]