Zacks Investment Research cut shares of Fomento Economico Mexicano S.A.B. de C.V. (NYSE:FMX) from a buy rating to a hold rating in a report published on Tuesday.

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 analysts have also recently commented on the stock. BidaskClub cut shares of Fomento Economico Mexicano S.A.B. de C.V. from a strong-buy rating to a buy rating in a research report on Friday, July 28th. 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. Finally, Gabelli assumed coverage on shares of Fomento Economico Mexicano S.A.B. de C.V. in a report on Monday, July 17th. They set a buy rating and a $112.00 price objective on the stock. One investment analyst has rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of Buy and a consensus target price of $108.75.

Fomento Economico Mexicano S.A.B. de C.V. (FMX) traded down 0.33% on Tuesday, hitting $99.06. The stock had a trading volume of 31,951 shares. Fomento Economico Mexicano S.A.B. de C.V. has a 1-year low of $73.45 and a 1-year high of $103.82. The company’s 50 day moving average is $99.94 and its 200-day moving average is $94.65. The firm has a market capitalization of $35.45 billion, a price-to-earnings ratio of 29.57 and a beta of 0.58.

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 Zacks’ consensus estimate of $0.83 by ($0.11). The firm 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 net margin of 5.26% and a return on equity of 8.42%. On average, analysts forecast that Fomento Economico Mexicano S.A.B. de C.V. will post $3.47 EPS for the current year.

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Several institutional investors and hedge funds have recently bought and sold shares of FMX. BlackRock Inc. acquired a new stake in shares of Fomento Economico Mexicano S.A.B. de C.V. in the 1st quarter worth about $118,653,000. Schroder Investment Management Group raised its holdings in shares of Fomento Economico Mexicano S.A.B. de C.V. by 302.3% in the 1st quarter. Schroder Investment Management Group now owns 1,402,999 shares of the company’s stock worth $127,013,000 after acquiring an additional 1,054,253 shares during the last quarter. Capital World Investors acquired a new stake in shares of Fomento Economico Mexicano S.A.B. de C.V. in the 2nd quarter worth about $47,255,000. Commonwealth Bank of Australia raised its holdings in shares of Fomento Economico Mexicano S.A.B. de C.V. by 79.6% in the 2nd quarter. Commonwealth Bank of Australia now owns 947,776 shares of the company’s stock worth $93,202,000 after acquiring an additional 420,114 shares during the last quarter. Finally, William Blair Investment Management LLC raised its holdings in shares of Fomento Economico Mexicano S.A.B. de C.V. by 55.1% in the 2nd quarter. William Blair Investment Management LLC now owns 1,087,301 shares of the company’s stock worth $106,925,000 after acquiring an additional 386,233 shares during the last quarter. Institutional investors own 21.58% of the company’s stock.

Fomento Economico Mexicano S.A.B. de C.V. Company Profile

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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