Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, Latin American beverage giant Fomento Economico Mexicano (NYSE: FMX ) , a.k.a. FEMSA, has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at FEMSA's business, and see what CAPS investors are saying about the stock right now.
FEMSA Stats:
| Headquarters (Founded) |
Monterrey, Mexico (1890) |
|
Market cap
|
$15.6 billion
|
|
Industry
|
Beverages
|
|
TTM revenue
|
$14.1 billion
|
|
Management
|
CEO Jose Fernandez (since 1995)
CFO Javier Sanjines (since 2006)
|
|
Return on Equity (avg. last three yrs.)
|
12.1%
|
|
CAPS players bullish on FMX also bullish on
|
Apple (Nasdaq: AAPL )
Cemex (NYSE: CX )
Chesapeake Energy (NYSE: CHK )
|
|
CAPS players bearish on FMX also bearish on
|
Marvel Entertainment (NYSE: MVL )
Genesee & Wyoming (NYSE: GWR )
FARO Technologies (Nasdaq: FARO )
|
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 192 of 195 of the All-Star players who have rated FEMSA -- some 98.5% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include SloanBuckman and Terok1313, both of whom are ranked in the top 10% of our community.
With three holding companies under the FEMSA umbrella -- Coca-Cola FEMSA (soft drinks), FEMSA Cerveza (beer), and FEMSA Comercio (convenient stores) -- SloanBuckman believes that investors have "gotta love this company's diversification and growth prospects. It's perfectly positioned to take advantage of the rise of Mexican consumerism."
A more recent pitch from Terok1313 in April of this year follows that logic, focusing on FEMSA as a fabulous foreign play:
Some people say America is entering a second Great Depression, or that America is about to lose its standing as the last remaining Super Power. Whether or not things go that far, there's little doubt that the American economy is in decline, at least for a little while. But the sliding of the greenback and the development of China, India, and Brazil (to name a few) offer a compelling opportunity for investment in foreign markets. This is one of a handful of stocks I've picked to capitalize on this opportunity.
What do you think about FEMSA, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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