The five giants shining in the Mexican stock market in 2025: These companies are driving market frenzy

Market Surprises Come from the South

Investors in 2025 have just discovered an undervalued opportunity—the Mexican stock market. While the three major U.S. indices perform modestly or even decline, Mexico’s S&P/BMV IPC index has surged 21.7% over the past 12 months, a performance that has caught the eye of many North American investors. Behind this rebound is a group of companies truly supporting the entire market.

Market Structure Dominated by Five Major Companies

The Mexican stock market has a “big elephant” vibe—five giants leading the way, with others following to catch a share.

These five companies are: Walmart Mexico, America Movil, Grupo Mexico, FEMSA, and Banco de Mexico Group. They jointly control 44.2% of the total market capitalization and account for 55.8% of the weight in the S&P/BMV IPC index. In other words, betting on these five companies’ performance essentially predicts the overall direction of the Mexican stock market.

To understand how concentrated this is, just look at one number: the combined market cap of the top five U.S. companies is 15 times the total value of the entire Mexican stock market. What does this mean? Although Mexico’s market is the second-largest in Latin America, size-wise, it is still quite small.

The Five Major Players Show Their Strengths

Walmart Mexico: The Stable Income Machine of the Retail King

This retail giant performed steadily in Q2 2025. Sales rose to 246.25 billion pesos year-over-year, but profits declined from 12.51 billion pesos in the same period last year to 11.23 billion pesos. The stock fluctuated between $61.43 and $63.97, with an annual range from $50.79 to $67.34.

Most interestingly, the company’s dividend yield is as high as 3.83%, attracting many investors seeking stable cash flow. Analysts maintain a “beat the market” rating, hinting at further upside.

Market Cap: 1.10 B MXN | Dividend Yield: 3.83%

America Movil: The Telecom Giant’s Global Ambitions

As Latin America’s largest telecom operator, America Movil serves 323 million users across 23 countries. Controlled by Carlos Slim’s Grupo Carso, this company is a true multinational giant.

Q3 performance was solid—revenue of 23.292 billion pesos, up 4.2% year-over-year, with net profit reaching 2.27 billion pesos. From a low of 15,675 pesos annually, it rebounded to a high of 40,000 pesos, with an impressive increase. The investor consensus is “buy,” with a target price of 21,323 pesos.

Market Cap: 70.75 billion USD | Q3 Growth: 4.2%

Grupo Mexico: The Mining Empire’s Rebirth from the Ashes

Founded in 1978, this giant operates in mining, transportation, and infrastructure. Its mining division is Mexico’s largest, ranking third globally in copper production. However, the company has also faced criticism for past environmental incidents, such as the 2019 sulfuric acid leak.

Q3 results were explosive—revenue grew 11% to $4.59 billion, and profits surged over 50% to $1.39 billion. The stock fluctuated between $158 and $162, with a yearly increase from $91 to $167. However, the analyst price target of 149.42 pesos suggests room for adjustment, and the rating remains relatively conservative.

Market Cap: 1.27 B MXN | Q3 Profit Growth: 50%+

FEMSA: The Diversified Conglomerate in Consumer Goods

FEMSA is the world’s largest Coca-Cola bottler, with operations spanning beverages, retail, foodservice, and pharmacies. Founded in 1890, this century-old company has a presence in 17 countries across Central and South America.

Q3 earnings were somewhat complex—revenue increased 9.1% to 214.638 billion pesos, but net profit fell 36.8% to 5.838 billion pesos, mainly due to exchange losses and rising financing costs. The dividend yield is a high 7.4%, attracting income-focused investors. The current market rating is “buy.”

Market Cap: 583.28 million MXN | Dividend Yield: 7.4%

Banco de Mexico Group: The Stabilizer of the Banking System

As Mexico’s second-largest bank, Banorte has 22 million customers, over 1,000 branches, and more than 7,000 ATMs. Founded in 1992, it is also the largest operator of Mexico’s pension funds.

Q3 net profit was 13.008 billion pesos, down 9% year-over-year, but analysts still maintain an “overweight” rating. The PER ratio is only 9.02, making it the most affordable among the five giants. The dividend yield of 7.3% is also quite attractive.

Market Cap: 534.70 million MXN | PER Ratio: 9.02

The Broader Market Context: Why Is Now an Opportunity?

Despite challenges like Trump’s potential return to the White House and 25% tariffs, Mexico’s economy in 2025 has shown unexpected resilience. This is due to three factors:

Strong domestic consumption—Mexican household spending remains robust, benefiting retail and consumer sectors.

Nearshoring wave—U.S. companies are accelerating production shifts to Mexico, creating new investment opportunities and jobs.

Currency stability—The peso remained relatively stable throughout the year, avoiding significant devaluation and easing cost pressures for companies.

Macro factors also support this—inflation has fallen to 3.5%, and the Bank of Mexico has begun cutting interest rates, providing a more favorable financing environment for stocks. As a result, the S&P/BMV IPC hovers around 63,000–64,000 points, reaching new highs.

The Index System Supported by Five Major Companies

These five companies are not only large in market cap but also dominate the weight in the S&P/BMV IPC, the main index. Out of 45 companies in the index, these five account for over 55% of the weight, essentially determining the index’s rise or fall.

Industry-wise, consumer goods, materials, and industrial sectors make up nearly 70% of the index weight, and these five companies are leaders in those sectors. The index is reviewed twice a year (March and September) to ensure the most liquid and largest companies remain in the basket.

Insights for Traders

If you’ve been putting all your chips into U.S. stocks, now might be the time to look south. The Mexican stock market, though small, offers good growth potential and effective diversification.

A balanced allocation could look like this: core holdings in these five giants and broad-based Mexican stocks, moderate exposure to blue-chip U.S. stocks, plus bonds from both countries for defense. This way, you can capitalize on the rebound trend in Mexico while avoiding putting all eggs in one basket, and also mitigate geopolitical and exchange rate risks.

The key question now is: how long can this rally last? Can these five giants continue to lead? The answers to these questions will determine your 2025 investment returns in Mexico’s stock market.

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