ASR Stock Overview

Grupo Aeroportuario del Sureste is a good investment option because of its solid financial performance, focus on tourism, and various income sources beyond just airport services. The company's steady revenue growth, careful handling of debt, and recovery of dividends show its strength and ability to create long-term value, even with changing passenger numbers. Additionally, its key locations in popular tourist areas and high entry barriers give it a competitive edge and opportunities for future expansion.

Grupo Aeroportuario del Sureste posted good Q2'24 earnings; while traffic was down in Mexico, aerospace revenue still grew 24% and per-passenger non-aero revenue continues to improve. Sureste faces less exposure to engine issues with major Mexican carriers and potential government policy changes, but macro risks to tourism are still present in the near-term. Concession operators saw a sell-off after the Mexican elections; while there are risks that the government will worsen the terms of concessions, they remain vital parts of the economy.

MONTERREY, Mexico, June 10, 2024 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announces today that it has entered into a new derivative instrument in the form of an accelerated share repurchase transaction (“ASR”) to repurchase the Company's American Depositary Shares (“ADSs”)1. Under the terms of this new ASR, FEMSA has agreed to repurchase up to USD $600 million of its ADSs. The total number of ADSs ultimately repurchased under this ASR will be based on the daily volume-weighted average price of the Company's ADSs during the term of the ASR and subject to certain limitations. The final settlement of the ASR is expected to be completed, at the latest, in the fourth quarter of 2024.

Here is how Grupo Aeroportuario del Sureste (ASR) and Ryanair (RYAAY) have fared in comparison to their industry during the current year.

Now is a fantastic opportunity to consider investing in stocks within the travel and hospitality sectors, which were temporarily impacted by the COVID-19 pandemic.

ASR stock has performed well, outperforming the broader market with a 21.7% return. ASR reports lower revenues and EBITDA, but adjusted figures show positive growth. ASR's 2024-2028 investment plan and tariff increases suggest significant upside for ASR stock.

These stocks still look attractive, and they could provide decades of strong returns.

Here is how Grupo Aeroportuario del Sureste (ASR) and EuroDry (EDRY) have performed compared to their sector so far this year.

RYI, SIEGY and ASR made it to the Zacks Rank #1 (Strong Buy) income stocks list on December 18, 2023.