Would You Invest in These South-of-the-Border Stocks?

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Immigration from Mexico has been a hot topic for years, but the trend has drastically slowed, and is even showing signs of reversal.

From 2005 to 2010, approximately 1.4 million Mexicans immigrated to the U.S., which is the same amount that either moved back or were deported. This is in stark contrast to the approximate 3 million who immigrated and less than 700 thousand who left between 2000-2005.

This data marks the first significant decrease in unauthorized Mexican immigrants living in the US in at least two decades.


The Pew Hispanic Center mentions that the standstill in immigration is likely due to a poor job and construction market, border enforcement, deportation increases, and possibly better economic opportunities in Mexico, according to Zero Hedge.

Mexicans now total 58% of the unauthorized immigrants that are living in the U.S. and 30% of the total immigrants. Due to border security and crossing dangers, the number of illegal crossing attempts dropped from over 1 million in 2005 to 286 thousand in 2011.

Business section: Investing ideas
Is Mexico's economy more appealing than the U.S. economy? Below is a list of Mexican stocks that are trading on U.S. exchanges. Do you think they will do better than U.S. markets?

 (Click here to access free, interactive tools to analyze these ideas.)

1. Fomento Econ: Engages in non-alcoholic beverage, retail, and beer industries. The company has a market cap of $29.67 billion, most recent closing price at $81.16.

2. America Movil (NYS: AMX) : Provide wireless and fixed communications services in Latin America. The company has a market cap of $95.37 billion, most recent closing price at $24.94.

3. Coca-Cola FEMSA (NYS: KOF) : Produces, markets, and distributes Coca-Cola trademark beverages and brands. The company has a market cap of $20.73 billion, most recent closing price at $104.41.

4. GrupoTelevisa: Operates as a media company in Mexico and internationally. The company has a market cap of $11.46 billion, most recent closing price at $20.26.

5. CEMEX (NYS: CX) : Engages in the production, marketing, distribution, and sale of cement, ready-mix concrete, aggregates, and other construction materials worldwide. The company has a market cap of $7.11 billion, most recent closing price at $6.70.

6. GrupoAeroportuario del Sureste: Through its subsidiaries, holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. The company has a market cap of $2.28 billion, most recent closing price at $75.84.

7. GrupoAeroportuario del Pacifico: Engages in the development, operation, and maintenance of airports in the Pacific and central regions of Mexico. The company has a market cap of $2.14 billion, most recent closing price at $38.23.

8. Gruma (NYS: GMK) : Engages in the production, marketing, distribution, and sale of tortillas, corn flour, wheat flour, and related products. The company has a market cap of $1.57 billion, most recent closing price at $11.11.

9. GrupoSimec (NYS: SIM) : Engages in the manufacture, processing, and distribution of special bar quality and structural steel products primarily in the United States, Mexico, and Canada. The company has a market cap of $1.55 billion, most recent closing price at $9.33.

10. Empresas ICA: Engages in the construction and related activities in Mexico. The company has a market cap of $1.08 billion, most recent closing price at $6.97.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.


 

At the time this article was published Kapitall's Danny Guttridge does not own any of the shares mentioned above. Data sourced from Finviz. Motley Fool newsletter services have recommended buying shares of Grupo Aeroportuario del Pacifico, Grupo Aeroportuario del Sureste, and Fomento Econ. The Motley Fool has a disclosure policy.
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