Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Thursday. The brokerage currently has a $111.00 price objective on the stock. Zacks Investment Research‘s price objective indicates a potential upside of 11.67% from the company’s current price.

According to Zacks, “FEMSA outperformed the broader 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. However, 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, FEMSA's focus on achieving growth via acquisitions bode well.”

A number of other equities research analysts have also issued reports on the stock. Morgan Stanley assumed coverage on shares of Fomento Economico Mexicano S.A.B. de C.V. in a report on Thursday. They set an “overweight” rating and a $120.00 target price for the company. BidaskClub raised shares of Fomento Economico Mexicano S.A.B. de C.V. from a “buy” rating to a “strong-buy” rating in a report on Tuesday, August 22nd. Gabelli initiated coverage on shares of Fomento Economico Mexicano S.A.B. de C.V. in a report on Monday, July 17th. They issued a “buy” rating and a $112.00 price objective for the company. Finally, Citigroup Inc. lowered shares of 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 equities research analyst has rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of “Buy” and an average target price of $108.75.

Shares of Fomento Economico Mexicano S.A.B. de C.V. (FMX) traded up 0.02% during trading on Thursday, hitting $99.40. 398,100 shares of the company’s stock were exchanged. 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 $35.57 billion, a P/E ratio of 29.67 and a beta of 0.58. The company has a 50-day moving average of $99.94 and a 200-day moving average of $94.65.

Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) last released its earnings results on Tuesday, July 25th. The company reported $0.72 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.83 by ($0.11). Fomento Economico Mexicano S.A.B. de C.V. had a return on equity of 8.42% and a net margin of 5.26%. The business had revenue of $6.35 billion for the quarter, compared to analysts’ expectations of $6.49 billion. On average, equities analysts expect that Fomento Economico Mexicano S.A.B. de C.V. will post $3.47 earnings per share for the current fiscal year.

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Institutional investors and hedge funds have recently made changes to their positions in the stock. Permit Capital LLC grew its holdings in shares of Fomento Economico Mexicano S.A.B. de C.V. by 12.8% in the second quarter. Permit Capital LLC now owns 1,100 shares of the company’s stock valued at $109,000 after purchasing an additional 125 shares during the period. Intrust Bank NA purchased a new stake in shares of Fomento Economico Mexicano S.A.B. de C.V. in the second quarter valued at about $200,000. OxFORD Asset Management LLP purchased a new stake in shares of Fomento Economico Mexicano S.A.B. de C.V. in the second quarter valued at about $201,000. Laurel Wealth Advisors Inc. purchased a new stake in shares of Fomento Economico Mexicano S.A.B. de C.V. in the second quarter valued at about $202,000. Finally, Quantum Capital Management purchased a new stake in shares of Fomento Economico Mexicano S.A.B. de C.V. in the second quarter valued at about $206,000. 21.58% of the stock is owned by hedge funds and other institutional investors.

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.

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

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