The Mexican stock market is in rare form this year. The S & P/BM IPC index, the country's stock market benchmark, is up more than 9% in 2023. The iShares MSCI Mexico ETF is doing even better, surging more than 22% in that time. Mexican stocks have gotten a boost from nearshoring, or companies bringing supply chains closer to their home country, as well as economic spillover from the U.S. The U.S. economy has been resilient even as the Federal Reserve raises rates.
S.-listed shares rising just 7% year to date. However, analyst Vitor Tomita said risks of higher competition and the company's leverage toward Mexican-American media company Univision have already been priced in. Televisa owns a 45% stake in Univision. "All in, we see upside to consensus margins for the telecom business and believe current valuation understates the value of TV's media business," Tomita said.