Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “FEMSA's second-quarter 2017 results marked its fourth consecutive earnings miss, while sales lagged estimates for the second straight time. Moreover, the company continued to witness margin pressures due to decline in margins at Coca-Cola FEMSA and lower-margin businesses growth at FEMSA Comercio, as well as higher operating expenses at Coca-Cola FEMSA and FEMSA Comercio’s Health division. Nevertheless, the company surpassed the industry in the year so far. The company is on track to drive growth through strategic measures, including increasing store count, diversifying business portfolio and focusing on core business activities. Further, its exposure in various industries including beverage, beer and retail, gives it an edge over competitors. Also, FEMSA's strong cash flow generation capacity enables it to make incremental investments in business expansion. FEMSA's focus on achieving growth via acquisitions also bode well.”

Several other analysts have also weighed in on FMX. J P Morgan Chase & Co raised Fomento Economico Mexicano S.A.B. de C.V. from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $98.00 to $117.00 in a report on Monday. Morgan Stanley started coverage on Fomento Economico Mexicano S.A.B. de C.V. in a report on Thursday, September 14th. They set an “overweight” rating and a $120.00 target price on the stock. BidaskClub upgraded Fomento Economico Mexicano S.A.B. de C.V. from a “buy” rating to a “strong-buy” rating in a research report on Tuesday, August 22nd. Gabelli initiated coverage on Fomento Economico Mexicano S.A.B. de C.V. in a research report on Monday, July 17th. They issued a “buy” rating and a $112.00 target price for the company. Finally, Citigroup Inc. downgraded Fomento Economico Mexicano S.A.B. de C.V. from a “buy” rating to a “neutral” rating in a report on Tuesday, June 13th. One analyst has rated the stock with a sell rating, one has given a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus price target of $110.00.

Fomento Economico Mexicano S.A.B. de C.V. (NYSE FMX) traded up 1.09% during midday trading on Tuesday, hitting $97.05. The stock had a trading volume of 141,137 shares. The company has a 50-day moving average price of $99.05 and a 200-day moving average price of $95.87. Fomento Economico Mexicano S.A.B. de C.V. has a 12-month low of $73.45 and a 12-month high of $103.82. The company has a market cap of $34.73 billion, a price-to-earnings ratio of 28.63 and a beta of 0.55.

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) last issued its quarterly earnings results on Tuesday, July 25th. The company reported $0.72 EPS for the quarter, missing the consensus estimate of $0.83 by ($0.11). The company had revenue of $6.35 billion for the quarter, compared to the consensus estimate of $6.49 billion. Fomento Economico Mexicano S.A.B. de C.V. had a return on equity of 8.42% and a net margin of 5.26%. Equities analysts anticipate that Fomento Economico Mexicano S.A.B. de C.V. will post $3.48 EPS for the current year.

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Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. First Trust Advisors LP bought a new position in Fomento Economico Mexicano S.A.B. de C.V. in the first quarter worth about $240,000. Stifel Financial Corp boosted its stake in Fomento Economico Mexicano S.A.B. de C.V. by 20.1% in the first quarter. Stifel Financial Corp now owns 3,292 shares of the company’s stock valued at $293,000 after acquiring an additional 550 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in Fomento Economico Mexicano S.A.B. de C.V. in the first quarter valued at approximately $239,000. Wellington Management Group LLP acquired a new position in Fomento Economico Mexicano S.A.B. de C.V. in the first quarter valued at approximately $20,045,000. Finally, Legal & General Group Plc grew its holdings in shares of Fomento Economico Mexicano S.A.B. de C.V. by 282.2% during the first quarter. Legal & General Group Plc now owns 10,564 shares of the company’s stock valued at $936,000 after purchasing an additional 7,800 shares during the last quarter. Hedge funds and other institutional investors own 21.62% of the company’s stock.

About Fomento Economico Mexicano S.A.B. de C.V.

Fomento Economico Mexicano, SAB. de C.V. (FEMSA) is a holding company. The Company’s segments are Coca-Cola FEMSA, FEMSA Comercio-Retail Division and FEMSA Comercio-Fuel Division. The Company conducts its operations through holding companies, such as Coca-Cola FEMSA, SAB. de C.V. and subsidiaries (Coca-Cola FEMSA), which produces, distributes and sells beverages; FEMSA Comercio, SA de C.V.

Analyst Recommendations for Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX)

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