5-Star Stocks Poised to Pop: FEMSA

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.

Get the best of the Fool delivered to your inbox every Friday

For other international companies ready to pop, check out our Global Gains newsletter, free, for 30 days.

Apple, Marvel, and Cemex are Motley Fool Stock Advisor recommendations. Cemex is also a Global Gains pick. Chesapeake is an Inside Value selection. Genesee & Wyoming has been singled out by Motley Fool Hidden Gems. The Fool owns shares of Cemex.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

Comment (0)
Recommended (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 680321, ~/articles/articlehandler.aspx, 8/20/2008 10:06:14 AM,

Sign up for FREE Motley Fool site access!

Already registered? Login Here

It’s FREE! Enter your email address, and we’ll rush you to the article you're looking for right now.

Privacy / Legal Information

We will use your email address only to keep you informed about updates to our web site and about other products and services that we think might interest you. The Motley Fool respects your privacy. Please read our Privacy Statement

.

Related Tickers

Formento Economico Mexicano SAB (ADR)

FMX Up! $48.21 +0.06 (+0.12%) 9:45 AM
CAPS Rating:
501 Outperforms
10 Underperforms
Rate This Stock

Major Indices

S&P 5001,261.61 -0.40%
DJIA11,303.20 -0.40%
RSL 2K728.77 -0.17%
NASD2,379.04 -0.22%
Updated: 9:50:14 AM
Sponsored by:

The Motley Poll

Where will the U.S. dollar go from here?

Sponsored by: