5-Star Stocks Poised to Pop: America Movil

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Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Latin American telecom giant America Movil (NYSE: AMX) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at America Movil's business and see what CAPS investors are saying about the stock right now.

AmericaMovil facts

Headquarters (Founded)

Mexico City, Mexico (2000)

Market Cap

$67.1 billion

Industry

Wireless Communications

TTM Revenue

$29.4 billion

Management

CEO Daniel Aboumrad
CFO Carlos Jose Garcia Moreno Elizondo

Return on Equity (average last three years)

44.9%

Competitors

Telefonica (TEF)
Telefonos de Mexico (NYSE: TMX)

CAPS members bullish on AMX also bullish on

Cemex (NYSE: CX)
Apple (Nasdaq: AAPL)

CAPS members bearish on AMX also bearish on

Vimpel-Communications (NYSE: VIP)
ChinaMobile (NYSE: CHL)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 278 of the 284 All-Star members who have rated America Movil -- some 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include Guardian21 and HatchingPlans, both of whom are ranked in the top 5% of our community.

In May, Guardian21 noted that America Movil "is well positioned to benefit from the growth of wireless communications in emerging Latin American markets. ... Finally, AMX's share buyback will help to support the stock."

A more recent pitch by HatchingPlans in June shares that bullish outlook, highlighting a recent earnings miss as a potential buying opportunity:

Lots of people got unnecessarily scared and got out, giving a solid price. Well, they missed that earnings report because they are upgrading their networks. This is a good thing. At this point, they should have a more powerful wireless EDGE network than AT&T (NYSE: T) or Verizon... And with all these talks of an iPhone startup, that would mean exclusive rights to sell a hot phone in a hot market, with probably the best wireless internet network in the world.

Plus, they're a big stable company with solid growth and a lot of untapped customer potential. Check it out!

What do you think about America Movil, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. America Movil and Cemex are Motley Fool Global Gains recommendations. Cemex is also a Stock Advisor pick, as is Apple. The Fool owns shares of Cemex. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

12/2/2009 4:00 PM
VIP $19.86 Up +0.13 +0.66%
Vimpel-Communicati… CAPS Rating: ****
T $27.35 Up +0.17 +0.63%
AT&T, Inc. CAPS Rating: ****
AAPL $196.23 Down -0.74 -0.38%
Apple, Inc. CAPS Rating: ***
CX $11.43 Down -0.06 -0.52%
Cemex S.A. B de C.… CAPS Rating: *****
TMX $18.88 Up +0.47 +2.55%
Telefonos de Mexic… CAPS Rating: ****
CHL $47.68 Up +0.21 +0.44%
China Mobile Ltd.… CAPS Rating: *****
AMX $48.83 Down -0.86 -1.73%
America Movil S.A.… CAPS Rating: *****

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