Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB): A Bull Case Theory

We came across a bullish thesis on Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB) on Substack by Chit Chat Stocks. In this article, we will summarize the bulls’ thesis on OMAB. Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB)’s share was trading at $75.71 as of Jan 16th. OMAB’s trailing and forward P/E were 14.98 and 15.34 respectively according to Yahoo Finance.

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An aerial view of a bustling international airport terminal.

OMAB is a leading airport operator in Northern Mexico, managing key airports along the Pacific coast and U.S. border, with Monterrey as its flagship, contributing half of its traffic. At the heart of Mexico’s reshoring boom, Monterrey is driving economic growth, which is expected to increase air travel demand significantly. This traffic growth directly translates to higher revenue for OMAB. The company currently trades at an attractive 10x earnings, with the potential to reach just 5x earnings within five years if Mexico’s economic expansion continues as anticipated. OMAB’s management has a proven track record of maintaining strong relationships with stakeholders, ensuring operational stability and long-term growth. With a clear trajectory for increased traffic and earnings, OMAB is strategically positioned to benefit from Mexico’s economic transformation, offering investors a compelling opportunity for growth.

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held OMAB at the end of the third quarter which was 6 in the previous quarter. While we acknowledge the risk and potential of OMAB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OMAB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.