Zacks Investment Ideas feature highlights: Cementos Pacasmayo, Cencosud and
Grupo Financiero Santander Mexico
CHICAGO, Nov. 2, 2012
CHICAGO, Nov. 2, 2012 /PRNewswire/ --Today, Zacks Investment Ideas feature
highlights Features: Cementos Pacasmayo S.A.A. (NYSE:CPAC), Cencosud S.A.
(NYSE:CNCO) and Grupo Financiero Santander Mexico, S.A.B. de C.V. (NYSE:BSMX).
3 New Latin American Stocks
Latin America is hot. Even as the rest of the global economy appears to be
slowing, Latin American countries saw growth in 2012 and are expected to see
even stronger growth in 2013.
Here are some of the GDP projections for 2013:
Colombia: between 2% and 5%
Brazil: rebounding to 4%
Mexico: between 3.8% and 4.1%
The top question I always get asked is, "what Latin American stocks can I buy
to play this growth?"
If only it were that easy.
There simply aren't that many Latin American stocks traded on the American
On the NYSE, for instance, there are only about 77 Latin American companies
listed. That's why many investors simply throw in the towel and buy a mutual
fund or an ETF.
But you're in luck this year if you're looking for individual stocks to buy
because 3 Latin American companies went IPO this year providing even further
Investors Must Have Patience Regarding Zacks Earnings Information
One thing to keep in mind, however, is that because these companies are
completely new on the exchanges this year, there is a lot less earnings
information. There is simply no track record yet. Some companies have only
reported one time since going public and others haven't reported yet at all.
Additionally, for those with analyst coverage, there are few estimates so far.
Even for foreign companies listed for years, there are fewer covering
analysts. There is simply less coverage on foreign companies. So it's going to
take some time to get information rolling in on these newly listed companies.
But, that doesn't mean there aren't investing opportunities. Two of these
three companies already have estimates and a Zacks Rank. The third is simply
Not Everything Is About Brazil
While Brazil has been the hot spot for investors over the last five years,
these three companies represent a broader perspective on Latin America with
their headquarters in Peru, Mexico and Chile. Look beyond Brazil for investing
3 Latin American Companies You Can Now Own
Cementos Pacasmayo S.A.A. (NYSE:CPAC)
Cementos makes cement and cement-related materials like concrete blocks and
ready-mix concrete. Operating for more than 54 years, the Peru-based company
listed on the NYSE in February 2012. It's a small cap with a market cap of
just $1.4 billion.
On Oct 30, the company reported its third quarter results and beat the Zacks
Consensus by 3 cents. It was the first quarter in which Zacks had a consensus
estimate. Sales of goods rose 19% in the quarter. For the first 9 months of
the year, cement sales volume climbed 17.5% compared to the first 9 months of
The one covering analyst is expecting double digit earnings growth in both
2012 and 2013 of 81.5% and 14.3%, respectively. Shares are currently trading
with a forward P/E of 22.4.
It is a Zacks #3 Rank (Hold).
Cencosud S.A. (NYSE:CNCO)
Cencosud is one of the largest retailers in Latin America. Headquartered in
Chile, it operates supermarkets, home improvement stores, shopping centers and
department stores in Chile, Brazil, Argentina, Colombia and Peru. On Aug 31,
the company announced it opened Costanera Center, the largest shopping mall in
South America, in Santiago, Chile.
Cencosud was listed on the NYSE in June 2012. With a market cap of $13.4
billion, it is among the larger Latin American companies to be listed.
On Oct 19, Cencosud expanded its reach by acquiring French retailer
Carrefour's operations in Colombia for $2.6 billion. Carrefour operated 72
hypermarkets, 16 convenience stores and four cash-and-carry stores.
The company is scheduled to report its third quarter results on Dec 1. But in
the second quarter it saw revenue rise 22% and double digit same store sales
There is also only one estimate for 2012 and 2013 on Cencosud. There hasn't
yet been a consensus for a quarter. But the one covering analyst expects
earnings growth of 22.2% in 2013. Shareholders also get a dividend which is
It is a Zacks #3 Rank (Hold).
Grupo Financiero Santander Mexico, S.A.B. de C.V. (NYSE:BSMX)
Santander Mexico is one of Mexico's largest banks with 1,123 branches
throughout Mexico. It provides retail and commercial banking, securities
brokerage and financial advisory services to both individuals and
This is the newest of the group, having gone public in September 2012. Zacks
does not yet have estimate data on the company because the IPO is too recent.
It might take a few months for analysts to take up coverage and for data to
come in. With a market cap of $19.3 billion, I would expect some analyst
On Oct 25, the bank reported its third quarter results. It saw a 14.9%
year-on-year increase in net interest income and 28.6% growth in both consumer
loans and credit cards. Loans to small and medium enterprises also climbed
There's no Zacks Rank yet.
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