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 exchanges.
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 choices.
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 too new.
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 opportunities.
3 Latin American Companies You Can Now Own
- Cementos Pacasmayo
- Santander Mexico