One of the key stories for those who invest in Mexico, and major Mexican companies like FEMSA (NYSE:FMX), Cemex (NYSE:CX), Walmex (OTCQX:WMMVY), and Grupo Bimbo,
is the pace of economic recovery in Mexico. While some measurements of
the economy have been getting more positive, the overall pace of
recovery seems to be a little slower than hoped as higher taxes have
pressured disposable income and other pro-growth efforts have yet to
really kick in and contribute.
That's not a great backdrop for
FEMSA and this large consumer-focused company had a so-so second
quarter. Management's comments seemed to point toward a more gradual
recovery than a sharp upward inflection, but underlying results aren't
exactly terrible. I can't call FEMSA an especially cheap stock today,
but management has a long-term play to make this company an even larger
consumer-focused business and there is still above-average long-term
growth potential.
Read the full article here:
FEMSA Seeing A Slower Rebound
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