When considering names to put on a watchlist, stocks with an 80 or higher Relative Strength Rating are more likely to yield big returns. Wireless phone and data services giant America Movil just cleared that benchmark with an RS Rating upgrade from 80 to 84.
Consensus of analysts polled by FactSet is for America Movil to report a 36-cents per share profit for the June-ending quarter, reversing sharply from a 2-cent per share loss the same quarter a year ago. That is ostensibly a 1,885% jump in EPS. Revenue is projected to rise 14% to a record $12 billion.
America Movil Tops High-Water Mark
The RS rating hike to 84 is bullish because market research shows that stocks that go on to make the biggest gains often have an 80 or better RS Rating as they begin their biggest climbs. America Movil is in that club now. There is a caveat however. The company seems poised for strong growth but is coming off a series of erratic profit and sales reports.
Mexico City-based America Movil is owned by Carlos Slim Helu, one of the richest people in the world. Watchlist candidate America Movil provides wireless services to 285 million people in 24 countries, including the U.S. through its subsidiaries TracFone and Claro Enterprise Solutions.
Looking For The Best Stocks To Buy And Watch? Start Here
Among its other key ratings America Movil has a strong 83 Composite Rating, out of 99. And it boasts a terrific A Accumulation/Distribution Rating. That shows that ETFs, insurance funds and the like are eager buyers of its stock. It's in the Telecom Services-Foreign industry group, which has an outstanding A- group Relative Strength Rating.
One yellow flag is its weak 45 EPS Rating. That rating is due to its erratic earnings history. The last four quarters it reported a 105% year-over-year drop in EPS, then a 195% surge in earnings, 58% drop and a 14% rise last quarter. Look for that rating to improve to an 80 or better. Revenue has fallen this past year too, but is also expected to improve this year.
AMX Stock Climbed 34% In 6 Weeks
America Movil stock is working on a cup without handle with a 20.31 buy point. See if the stock can clear the breakout price in heavy trading. Its stock price dropped to a 13.10 low on April 9 then turned upward. It traded at 17.55 Thursday afternoon, down for the day but up 34% from the April 9 low.
America Movil earns the No. 4 rank among its peers in the 24-stock Telecom Services-Foreign industry group. Millicom International Cellular is the top-ranked stock in the group.
IBD's proprietary Relative Strength Rating tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
RELATED:
Stocks With Rising Relative Strength Ratings
Profit From Short-Term Trends With SwingTrader
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
MarketSurge: Research, Charts, Data And Coaching All In One Place
