Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB) also has a mix of airports in many different places, although it has more airports in problematic areas than the other two. This combined with the fact that it has already soared so much in the past year makes this the least likely of the three to continue to soar. The stock is up 61.5%, which is the most out of the three Mexican airport operators. The profit margin was 26.9% last year, which is a good amount. The fact that Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB) has gone up so much recently means that a lot of the growth is already behind it. It has taken a dip in recent times, with the stock down more than 20% this quarter.
Stuck on the runway?
There are potential problems that could cause all three of these Mexican airport operators issues. A reduction in airline passengers would most definitely cause the profits to drop at the airline operators. This reduction in airline passengers could potentially come from two causes. One is that the violence in Mexico increases, scaring off tourists. Another issue is a general slowdown in the Mexican economy. The airport operators are not only dependent on tourists from outside of Mexico but also business travelers. A slowdown in the Mexican economy would also mean a slowdown in the number of lucrative business travelers
Either of these things could cause less airline passengers, which means less people to spend money at the airports. So far, the number of airline passengers has held up but it remains to be seen whether that can hold up in the future.
Fly like a bird
All three, Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR), Grupo Aeroportuario del Pacifico (ADR) (NYSE:PAC) and Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB) have good prospects for the future. The Mexican airport industry has performed well and it looks likely to continue into the future. While there are some possible headwinds that all three of these airport operators might face, the possibility for strong growth outweighs the risk. It looks like the Mexican airport industry is about to take off for a long flight upward.
The article Airport Stocks Taking off in Mexico originally appeared on Fool.com and is written by Jeremy Worthington.
Jeremy Worthington has no position in any stocks mentioned. The Motley Fool recommends Grupo Aeroportuario del Pacific S.A.B (ADR) and Grupo Aeroportuario del Sureste (ADR). Jeremy is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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