Fomento Económico Mexicano, S.A.B. de C.V. Price & Performance (FMX)

Fomento Económico Mexicano (FEMSA) is leveraging the growing popularity of non-alcoholic beverages, especially among younger consumers. Its strategy includes expanding product offerings and bolstering its OXXO retail chain. Analysts predict a 20% share price increase, supported by strong recent financial results and strategic divestments enhancing its core operations.12

FEMSA is trading at a 28.3% discount to its estimated fair value, offering growth potential based on discounted cash flow assessments. Despite recent market challenges, the company has shown resilience with a projected annual earnings growth of 21% over the next three years, positioning it favorably for long-term investors.34

FEMSA has completed key divestments, including its plastics and refrigeration businesses, to focus on its core bottling and retail operations. Its OXXO chain is expanding into the U.S., and the company’s “FEMSA Forward” strategy aims to drive innovation and long-term shareholder value, despite economic headwinds.56