Core Insights - Mexico is positioned as a significant trade partner for the USA and an attractive alternative for investment, with experts suggesting that 2025 is an exceptional year for Mexican assets [2][3] - The nearshoring trend is enhancing Mexico's role as a key manufacturing hub in North America, benefiting various sectors including petrochemicals, energy, pharmaceuticals, medical devices, semiconductors, and automotive [2][3] Investment Methodology - The list of the 10 Best Mexican Stocks was created using the Finviz stock screener and other platforms, focusing on companies with positive upside potential and substantial institutional backing as of November 21 [5][6] Stock Highlights - **CEMEX, S.A.B. de C.V. (NYSE:CX)**: - Hedge Fund Holders: 18 - Stock Upside Potential: 3.82% - Q3 2025 net sales reached $4.25 billion, a 2% increase from Q3 2024, with consolidated EBITDA rising by 19% year-over-year to $882 million [7][8][9] - **Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC)**: - Hedge Fund Holders: 8 - Stock Upside Potential: 7.25% - Reported 4.87 million passengers in October 2025, a 0.8% decrease from October 2024, but a 3.2% year-to-date increase for January–October 2025 [10][11][12]

Financial Data and Key Metrics Changes - The company achieved record revenue of $639 million, up 2% from the prior year, driven by higher cement sales volume and contributions from recently acquired aggregates businesses [10] - Earnings per share (EPS) was $4.23, down 1% from the second quarter of fiscal 2025, reflecting lower net earnings primarily due to reduced wallboard sales volume [10] - Operating cash flow decreased 12% to $205 million, primarily due to working capital changes [12] Business Line Data and Key Metrics Changes - In the heavy materials sector, revenue increased by 11%, driven by increased cement sales volume and a 24% increase in concrete and aggregates revenue [10] - Record aggregates sales volume was up 103%, including contributions from recently acquired businesses, with organic aggregates sales volume up 35% [11] - The light materials sector saw a revenue decrease of 13% to $213 million, reflecting lower wallboard sales volume and a 2% decrease in wallboard sales prices [11] Market Data and Key Metrics Changes - Cement and aggregates volumes increased for the second consecutive quarter, with a favorable outlook for the remainder of the fiscal year due to unspent funds from the Infrastructure Investment and Jobs Act [5] - Wallboard volumes were impacted by reduced demand due to high interest rates and affordability challenges, with a noted stability in wallboard pricing [6] Company Strategy and Development Direction - The company is focused on long-term growth investments, including a $430 million modernization and expansion project at the Laramie, Wyoming cement plant, expected to be completed by the end of calendar 2026 [7][8] - The company is also modernizing the Duke, Oklahoma wallboard facility, which will lower production costs by about 20% [9] - The company continues to seek high growth, high return projects and is open to M&A opportunities that meet return criteria [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding cement and aggregates volume recovery, supported by infrastructure spending and private non-residential construction [20] - The company remains focused on long-term growth despite short-term challenges in the residential construction market affecting wallboard demand [6][7] - Management highlighted the importance of maintaining a balance between price and volume, emphasizing a preference for price stability [18] Other Important Information - The company repurchased approximately 396,000 shares for $89 million during the quarter, returning a total of $97 million to shareholders [12] - The capital spending for fiscal 2026 is expected to be in the range of $475 million to $500 million, with a projected decrease in spending for fiscal 2027 [34] Q&A Session Summary Question: Wallboard volume performance and demand drivers - Management noted a significant pullback in production from builders during July and August, impacting wallboard demand, but emphasized a long-term positive outlook due to underconsumption of wallboard in the U.S. [15][16] Question: Cement volume drivers and future expectations - Management indicated that cement volume growth is driven by infrastructure spending and private non-residential construction, with cautious optimism for continued positive trends [19][20] Question: Organic aggregates volume growth - The 35% growth in organic aggregates volume was attributed to both acquisitions and capital improvements in existing operations, with a focus on growing this segment over time [22][23] Question: Cement pricing and competitive pressures - Management acknowledged some price degradation in Texas but noted overall pricing stability in the majority of their markets, with announced price increases effective January 1, 2026 [27][29] Question: Capital expenditures and tax implications - Capital spending for fiscal 2026 is expected to be $475 million to $500 million, with significant tax benefits from accelerated depreciation on new projects [33][36]