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Sunday, September 28, 2014

Mexico Now Has the Highest Quality Debt in Latin America: Time to Look at Mexican Stocks

President Enrique Pena Nieto of Mexico has championed policies to move economic growth forward in this country south of the border, including allowing American investments in Mexico. These pro-business moves have caused an increase in the country's debt rating to A3 and the cost to protect the country's debt has dropped to almost the level of Chile, and the price of credit-default swaps dropped below those of Chile.

The iShares MSCI Mexico Capped Investment ETF (EWW) is only up around 3% for the last twelve months, whereas the S&P 500 is up over 16%. Maybe this is an opportunity for a turnaround. The list of Mexico based stocks at WallStreetNewsNetwork.com show over a couple dozen that trade in the United States, and many of which pay dividends.

America Movil (AMX), the telecom company, trades on the New York Stock Exchange, at 18.2 times trailing earnings and 13.8 times forward earnings. For the latest quarter, the company reported an incredible 32.7% increase in earnings on a 4.0% rise in revenues. The stock pays a yield of 1.6%.


Grupo Televisa (TV) has a great stock ticker. This media company has a trailing price to earnings ratio of 35.4 and a forward PE of 28.5, with earnings rising 21.1% for the latest quarter on a 7.1% boost in revenues. The stock sports a small yield of 0.3%.


The airport company, Grupo Aeroportuario del Pacifico (PAC) has a 19.4 PE with a 1.7% yield. Quarterly earnings spiked 24% for the latest quarter with an 11.4% b ump up in revenues.

There are many other Mexico stocks to choose from, which can be found on the free list at WallStreetNewsNetwork.com.  Maybe you can make some profits by crossing the border.

Disclosure: Author did not own any of the above when the article was written and has no plans to do so in the next 72 hours. 

By Stockerblog.com


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