PriceSmart, Inc. share price was at $111.29 on August 7th with a trailing P/E of 23.43 according to Yahoo Finance. The company operates 54 membership warehouse clubs in Latin America and the Caribbean. Despite solid financials, PSMT has underperformed U.S. peers like Costco and BJ’s for a decade.

PSMT’s operations are similar to a long-EM, short-dollar carry trade, with FX being a key driver of performance. A 1% local currency appreciation boosts annual revenue growth by ~3% and EBITDA margins by 0.57%. The stock is currently trading at steep discounts, offering positive carry and acting as a hedge against USD weakness.

While 20 hedge fund portfolios held PSMT at the end of the first quarter, the stock is not among the 30 Most Popular Stocks Among Hedge Funds. Despite potential as an investment, certain AI stocks may offer greater upside potential with less downside risk. PSMT presents an opportunity for investors seeking an undervalued stock with strong fundamentals.

Read more at Yahoo Finance: PriceSmart, Inc. (PSMT): A Bull Case Theory