Mexico's stock market is undervalued compared to global peers with potential for long-term gains.

From Investing.com: 2025-01-25 04:00:15

Mexico’s equity market offers long-term investors a compelling opportunity with significant undervaluation compared to global peers. The peso has dropped over 20% since mid-2024 due to political uncertainties and trade tensions with the U.S. Mexican companies like Gruma and Wal Mart de Mexico are seen as resilient performers with strong fundamentals.

Barclays sees the valuation gap between Mexican equities and other emerging market indices as an attractive entry point. Analysts expect political tensions to ease in the second half of 2025, stabilizing the business environment and boosting consumer confidence. This could lead to a market rebound with reduced FX volatility and improving macroeconomic conditions.

The MSCI Mexico Index and Mexbol trade at a discount to other emerging markets, reflecting more on uncertainty than corporate performance. Investors willing to navigate short-term volatility for potential long-term gains may find opportunities in Mexican equities. Companies like Coca-Cola Femsa are expected to benefit from a weaker peso, boosting dollar-denominated sales.



Read more at Investing.com: Mexico’s stock market is a deeply undervalued opportunity, analysts say By Investing.com