WMMVF - Wal-Mart de México: From Hold To Buy Strength In The Face Of Persistent Headwinds
2024-06-08 08:36:04 ET
Summary
- Walmex's Q1 revenue growth was strong at 9.8% YoY, signaling favorable tailwinds and a potential decrease in near-term headwinds.
- The company's performance in the core Mexican market is driving growth, with higher revenue and EBITDA figures compared to Central America.
- Despite ongoing headwinds, Walmex's strong growth and potential for continued growth make it a buy, especially with the aggressive store growth cadence.
My initial coverage of Walmex - officially, Wal-Mart de México, S.A.B. de C.V. ( OTCQX:WMMVY )( OTCPK:WMMVF ) - turned out to be well-justified. Against a then-current price of about $42 on Jan 2, the current as-of-writing price of $35 or so represents a +15% YTD dip. My rating was a Hold, and I mentioned that near-term headwinds could mean it was the wrong time to get in. On further analysis, the fundamentals seem to be intact after Q124 earnings were reported at the end of April. If you see my initial article, you’ll notice that I mentioned a $32 to $42 price range that the stock seems to be stuck in. That phenomenon of the past two years seems to still be in play. The stock bounced off a support level just above $32 after the Q323 report, and since that time it has been twice rejected at just above $42, further validating that assumption....
Wal-Mart de México: From Hold To Buy, Strength In The Face Of Persistent Headwinds