Four Latin America Stocks Worth a Look Now (AKO-B, ASR, CZZ, ICA)
Latin American Markets were largely up on Thursday, due in part to hopes that a debt deal would be reached in the United States to avoid the fiscal cliff. Here are four Latin America based stocks traded on U.S. exchanges that have consensus buy recommendations from analysts. Futhermore, they have all seen their share price rise at least 20 percent in the past six months. They are Cosan (NYSE: CZZ), Embotelladora Andina (NYSE: AKO-B), Empresas ICA (NYSE: ICA) and Grupo Aeroportuario Del Sureste (NYSE: ASR).
Shares of this Brazilian sugar and ethanol producer are trading about 46 percent higher year-to-date, though it has pulled back about five percent from a recent multiyear high. Note though that there is talk that the company delist itself from the NYSE. The company sports a market capitalization near $4.3 billion. Its price-to-earnings (P/E) ratio is higher than the industry average. The one-year earnings per share (EPS) growth forecast is more than 117 percent, but the return on equity is only about three percent. The company posted strong EPS growth in its most recent quarter. Four of the six analysts surveyed by Thomson/First Call who follow the stock recommend buying shares; none recommend selling. Their mean price target, or where they expect the stock to go, is more than 13 percent higher than the current share price. The stock has outperformed Archer Daniels Midland (NYSE: ADM) and Bunge (NYSE: BG), as well as the S&P 500, over the past six months.
This producer of Coca-Cola (NYSE: KO) products and other beverages saw its shares rise about 38 percent year to date, despite being about four percent lower than the multiyear high reached in October. The Santiago-based company has a market cap near $4.8 billion. Its long-term EPS growth forecast is more than 12 percent, though per-share earnings have fallen short of analysts' expectations in recent quarters. The forward earnings multiple is 19.9 and the dividend yield is about 3.6 percent. Two of the four analysts surveyed recommend buying shares; none recommends selling them. The current share price has overrun the mean price target, but the highest target in the range represents about 10 percent potential upside and would be new multiyear high. Over the past six months, the stock has outperformed competitor Companhia de Bebidas das Américas (Ambev) (NYSE: ABV) and Coca-Cola, as well as the S&P 500.
The share price of this industrial, infrastructure and housing construction company is more than 83 percent higher than a year ago and trading near the 52-week high. The company easily topped consensus EPS estimates in the previous two quarters. The company is headquartered in Mexico City and has a market cap of about $1.4 billion. The long-term EPS growth forecast is almost 21 percent, though the return on equity is less than nine percent. The operating margin is less than the industry average, but so it the P/E ratio. Shares sold short on the NYSE are less than one percent of the float. Four of the five analysts polled recommend buying shares; none recommend selling. They believe the shares have some room to run as their mean price target is more than 19 percent higher than the current share price. That would be a level it has not seen since 2010. The stock has outperformed the likes of MasTec (NYSE: MTZ) and Granite Construction (NYSE: GVA) over the past six months.
Grupo Aeroportuario Del Sureste
Shares of this airport operator hit a new multiyear high earlier this week, and the share price is now about 92 percent higher than a year ago. The $3.1 billion market cap company is headquartered in Mexico City and offers a dividend yield near 2.5 percent. Its one-year EPS growth forecast is more than 14 percent and the return on equity is almost 12 percent. The P/E ratio is higher than the industry average, but so is the operating margin. EPS fell short of estimates in the previous two quarterly reports. However, the company said passenger traffic in the third quarter was up more than 10 percent over last year. Here again the current share price has overrun the mean price target of analysts. Over the past six months, the stock has outperformed competitor Grupo Aeroportuario Centro Norte (NYSE: OMAB), as well as the S&P 500.
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