President Peña Nieto has also introduced energy and tax reforms, which the OECD commended despite being unaware of the details: “The administration’s ambitious structural reform program – which includes telecommunications, energy and fiscal reforms – will raise sustainable long-term growth prospects.”
While President Peña Nieto’s reforms are promising for future growth, the status of the country’s short term growth is less clear. This inspired us to look for companies that are presently performing well with indicators of upside potential.
To begin, we constructed a universe comprised of Mexican stocks traded on US exchanges. We then screened for stocks that are rallying above their 20-day, 50-day, and 200-day moving averages (MA), which indicates that these stocks have strong upward momentum.
Next, we decided to incorporate a metric that analyzes past performance, in order to give some context for the stocks’ upward momentum. By screening for stocks that have outperformed over the last quarter, with over 15% return, we’ve isolated the firms that have done well in the past and may continue to do well.
We were left with four stocks on our list.
Click on the interactive chart below to see data over time.
Do you believe these stocks have upside potential? Use this list as a starting point for your own analysis.