Fomento Económico Mexicano (NYSE:FMX) Downgraded by Zacks Investment Research

Fomento Económico Mexicano (NYSE:FMXGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday, reports. They presently have a $67.00 price target on the stock. Zacks Investment Research‘s price target suggests a potential downside of 15.03% from the company’s previous close.

According to Zacks, “Shares of FEMSA underperformed the industry in the last three months. The stock’s dismal performance can be attributed to continued gross margin pressures in fourth-quarter 2021. Gross margin was affected by contraction at FEMSA Comercio’s Fuel Division, partly offset by margin expansion at FEMSA Comercio’s Proximity Divisions and at Coca-Cola FEMSA. Fourth quarter results were also partly hurt by the impacts of supply-chain disruptions and higher raw material costs. However, the company’s top line surpassed the Zacks Consensus Estimate and improved year over year. This marked the third straight quarter of revenue beat. Revenue growth was driven by gains across all business units, along with a favorable comparison with the year-ago quarter. FEMSA’s digital initiatives and business expansion endeavors also act as upsides.”

A number of other equities analysts also recently commented on the stock. UBS Group downgraded shares of Fomento Económico Mexicano from a “buy” rating to a “neutral” rating and cut their target price for the company from $105.00 to $86.00 in a research note on Tuesday, February 1st. HSBC downgraded shares of Fomento Económico Mexicano from a “buy” rating to a “hold” rating and set a $95.00 target price on the stock. in a research note on Thursday, January 20th. Finally, downgraded shares of Fomento Económico Mexicano from a “buy” rating to a “hold” rating in a research note on Tuesday, April 12th. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $89.33.

Shares of FMX stock traded down $0.53 during mid-day trading on Tuesday, reaching $78.85. The company’s stock had a trading volume of 25,586 shares, compared to its average volume of 499,286. The company’s 50 day simple moving average is $79.10 and its 200-day simple moving average is $78.61. Fomento Económico Mexicano has a 12-month low of $69.53 and a 12-month high of $89.59. The company has a quick ratio of 1.32, a current ratio of 1.69 and a debt-to-equity ratio of 0.54. The firm has a market capitalization of $28.21 billion, a PE ratio of 19.71, a price-to-earnings-growth ratio of 1.44 and a beta of 1.04.

Fomento Económico Mexicano (NYSE:FMXGet Rating) last issued its earnings results on Monday, February 28th. The company reported $0.91 EPS for the quarter, missing the Zacks’ consensus estimate of $1.13 by ($0.22). Fomento Económico Mexicano had a net margin of 5.14% and a return on equity of 8.96%. The business had revenue of $7.31 billion during the quarter, compared to analysts’ expectations of $7.03 billion. As a group, research analysts anticipate that Fomento Económico Mexicano will post 3.69 EPS for the current fiscal year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. D Orazio & Associates Inc. acquired a new stake in Fomento Económico Mexicano during the 3rd quarter valued at $27,000. Fieldpoint Private Securities LLC grew its holdings in Fomento Económico Mexicano by 125.9% during the 1st quarter. Fieldpoint Private Securities LLC now owns 323 shares of the company’s stock worth $27,000 after acquiring an additional 180 shares in the last quarter. Marshall Wace LLP acquired a new position in Fomento Económico Mexicano during the 1st quarter worth $36,000. Sageworth Trust Co of South Dakota acquired a new position in Fomento Económico Mexicano during the 4th quarter worth $31,000. Finally, Trust Co. of Vermont acquired a new position in Fomento Económico Mexicano during the 4th quarter worth $62,000. 20.93% of the stock is owned by institutional investors and hedge funds.

Fomento Económico Mexicano Company Profile (Get Rating)

Fomento Económico Mexicano, SAB. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages, including low-sugar or sugar-free carbonated beverages; refreshing juices, nectars, and fruit-based drinks; purified, and carbonated and flavored water; coffees, teas, and sports and energy drinks; and dairy products and products based on vegetable protein.

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