The Mexican stock market in 2025: The gems driving investment in Latin America

Market Overview: Why Mexico Attracts Global Investors

While North American investors face increasing volatility, Mexico emerges as a surprise in 2025. The Mexican Stock Exchange (BMV), Latin America’s second-largest market and the fifth in the Americas, has gained nearly 21.7% over the past 12 months. This performance far outpaces major U.S. indices, which remain stagnant or in negative territory.

The reason? A combination of factors: the strength of domestic Mexican consumption, the steady influx of nearshoring-related investments, controlled inflation around 3.5% annually, and a peso that has shown remarkable resilience amid geopolitical uncertainty. All of this has created more stable financial conditions than those observed in previous years.

Market Structure: A Concentrated but Dynamic Market

Size and Characteristics

The Mexican Stock Exchange has 145 listed companies, of which 140 are Mexican. Although this number may seem modest compared to other international stock markets, it is important to note that the Mexican market is highly concentrated: just 35 companies make up the main index S&P/BMV IPC, representing approximately 80% of the total market value.

Launched on October 30, 1978, and weighted by market capitalization, this index is reviewed twice a year (in March and September). Its composition reflects the current structure of the Mexican economy: sectors such as consumer staples (30.9%), materials (26.2%), and industrials (12.3%) dominate the stock market representation.

Historical Index Performance

The performance of the S&P/BMV IPC over time demonstrates the robustness of the Mexican market as a long-term investment:

• Last 12 months: 29% annualized return
• Last 5 years: 15% annualized return
• Last 10 years: 6.44% annualized return

These figures are calculated in real-time and available in both Mexican pesos (MXN) and U.S. dollars (USD).

Market Giants: Five Companies Shaping Mexico’s Stock Market

Market Power Concentration

The five largest companies listed on the BMV —Walmart de México, América Móvil, Grupo México, Fomento Económico Mexicano (FEMSA), and Grupo Financiero Banorte— account for approximately 44.2% of the total market capitalization. Within the main index, these firms hold 55.8% of its value, establishing themselves as the engines of the Mexican market.

This high concentration reflects how the Mexican economy operates: few large corporations control a significant portion of available capital. For any investor seeking exposure to the Mexican market, these five companies provide a robust representation of the overall economic landscape.

Stock Market Examples: Major Firms

Walmart de México

Founded in 1958 by Jerónimo Arango, Walmart de México is the country’s leading retail company. It manages warehouses, discount stores, hypermarkets, supermarkets, and clubs across Mexico and Central America, serving millions of customers with a strategy focused on competitive prices and product variety.

Its financial performance in Q2 2025 showed dynamism: sales reached 246,253.8 million pesos compared to 227,415.1 million in the same quarter last year. However, net income experienced a decline, dropping to 11,226.9 million pesos from 12,510.1 million in Q2 24.

• Market capitalization: 1.10 B MXN
• Current price range: $61.43 - $63.97
• Annual range: $50.79 - $67.34
• PER ratio: 21.86
• Dividend yield: 3.83%

Barron’s recommendation for WALMEX is “Overweight,” suggesting a buy above the market average.

América Móvil: The Telecom Giant

Headquartered in Mexico City, América Móvil is a multinational recognized for its dominance in the telecommunications sector. Operating in 23 countries across the Americas and Europe, it has over 323 million users. It ranks as the largest mobile phone company in the Americas and seventh worldwide in terms of subscriptions.

Beyond mobile telephony, América Móvil diversifies into advertising, call centers, and owns communication towers. It is controlled by Grupo Carso, whose majority shareholder is billionaire Carlos Slim.

In Q3 2025, América Móvil reported revenues of 232,920 million pesos, showing a 4.2% year-over-year growth. Net income reached 22,700 million pesos.

• Market capitalization: 70.75 billion USD
• Price range: $32,800.00 - $35,160.00
• Annual range: $15,675.00 - $40,000.00
• Average daily volume: 587 lots

Analyst consensus on Investing.com maintains a “Buy” recommendation, with a target price of 21.323 MXN over the next 12 months.

Grupo México: Mining, Transportation, and Infrastructure

Founded in 1978, Grupo México is a conglomerate operating in three strategic divisions: Minera México, Grupo México Transportes, and Grupo México Infraestructura. Its mining division is the largest extractive company in Mexico and the third-largest copper producer globally. In transportation, it operates the country’s most extensive railway fleet.

In Q3 2025, growth was notable: revenues increased by 11% to $4.59 billion, while net income surged over 50%, reaching $1.29 billion.

• Market capitalization: 1.27 B MXN
• Price range: $158.68 - $162.51
• Annual range: $91.08 - $167.85
• PER ratio: 17.71
• Dividend yield: 2.71%

According to Investing.com, the average target price is 149.42 MXN, indicating an approximate downside potential of –6.9%. Barron’s maintains a “Under/Sell” rating.

FEMSA: Beverages, Retail, and Pharmacies

Fomento Económico Mexicano (FEMSA) is the world’s largest Coca-Cola bottler. Founded in 1890 in Monterrey, this Mexican multinational leads in beverages, retail, restaurants, and pharmacies, with presence in 17 countries including Germany, Brazil, Chile, Colombia, Peru, and Uruguay.

In Q3 2025, total consolidated revenues grew 9.1% to 214,638 million pesos. However, net income fell 36.8% to 5,838 million pesos, affected by exchange losses and higher financial expenses.

• Market capitalization: 583.28 billion MXN
• Price range: $174.48 - $180.00
• Annual range: $156.00 - $212.11
• PER ratio: 38.85
• Dividend yield: 7.4%

Analysis portals maintain a “Buy” recommendation for FEMSA as of November 11, 2025.

Banorte: The Financial Pillar

Grupo Financiero Banorte, founded in 1992 and based in San Pedro Garza García, is Mexico’s second-largest bank and Latin America’s. It is listed on the Mexican Stock Exchange and Latibex, operating under the brands Banorte and Ixe.

With 22 million clients, over 1,000 branches, and more than 7,000 ATMs, Banorte is the oldest pension fund administrator (Administradoras de Fondos para el Retiro) in the country.

In Q3 2025, Banorte reported a net profit of 13,008 million pesos, a 9% year-over-year decline. Despite this, Barron’s maintains an “Overweight (Overweight)” recommendation.

• Market capitalization: 534.70 billion MXN
• Price range: $178.03 - $186.44
• Annual range: $131.60 - $187.29
• PER ratio: 9.02
• Dividend yield: 7.30%

Capitalization Data: Distribution of Opportunities

Market capitalization on the BMV varies significantly among companies. While Grupo México leads with 1,279,282 million MXN, some firms have modest caps as low as 17,882 million MXN. The average market cap stands at 221,939 million MXN, reflecting the diversity of options available to investors with different risk profiles.

The top 10 companies by market cap account for 71.6% of the main index’s value, with Grupo México alone representing 12.4% individually.

Macroeconomic Context: Factors Supporting the Rally

Cautious Monetary Policy with Flexibility

Mexico’s inflation has gradually decreased to around 3.5% annually, allowing the Bank of Mexico to begin gradual interest rate cuts. However, the monetary authority remains cautious, considering that core inflation stays above the 2-4% target range.

Exchange Rate Stability in Turbulent Times

The Mexican peso has shown surprising resilience. Throughout 2025, the currency has moved within a narrow range, avoiding sharp depreciation even amid trade tensions between the U.S. and its trading partners. For Mexican companies, this stability has reduced significant operational cost pressures and facilitated financial planning.

Nearshoring Factor

Under the Trump administration, the reimposition of tariffs and protectionist policies prompted many companies to relocate production. Mexico, as a U.S. neighbor with logistical advantages, has become a preferred destination for this investment. This dynamic has generated a steady flow of foreign capital and strengthened domestic demand.

Resilient Domestic Consumption

Despite uncertain winds, Mexican domestic consumption has remained robust, supported by a relatively stable labor market and income strength in export sectors.

Comparative Perspective: Mexico versus the United States

To understand the scale of the Mexican market, it is instructive to note that the five largest U.S. companies have a combined market capitalization more than 15 times the total value of the Mexican Stock Exchange. This scale difference should not be seen as weakness but as an opportunity: while the U.S. market is characterized by established competition and mature valuations, Mexico offers multiple solid fundamental values with growth potential.

Investment Strategy in 2025

For investors traditionally concentrated in U.S. assets, 2025 presents a significant tactical opportunity. A balanced portfolio could consider:

• Exposure to Mexican stocks: The five major companies mentioned above provide sector diversification (retail, telecommunications, mining, food, and finance) with sufficient capitalization to absorb significant investment volumes.

• Selective presence in U.S. assets: Maintain moderate exposure to developed markets to capture long-term growth.

• Local bonds: Consider fixed-income instruments from both economies to reduce risk and capture yield differentials.

This combination allows investors to capture performance differences between the two markets, reduce business and geopolitical risks, and build a more robust investment horizon amid significant changes.