Every few years Wall Street falls in love with Argentina again. Usually this ends badly.

The country runs out of dollars, the peso collapses, politicians rediscover the joys of spending money they do not have, and investors are left explaining to their spouses why they thought buying Argentine banks was a good idea.

This time might actually be different.

I know. I know.

Those are dangerous words when discussing a country that has defaulted on its debt so many times it practically qualifies as a national pastime. Nevertheless, the changes underway in Argentina deserve our attention.

President Javier Milei has spent the last two years doing things that politicians are generally not supposed to do. He has cut spending, attacked inflation, reduced government intervention, lifted most capital controls, and attempted to restore some level of economic sanity.

Remarkably, some of it is working.

Inflation remains high by normal standards, but normal standards do not apply in Argentina. Inflation has fallen dramatically from crisis levels. The government is running a primary budget surplus. Foreign exchange reserves are rebuilding. Capital is beginning to return. The IMF expects economic growth of roughly 3.5% this year, and there is a reasonable argument that growth could exceed that forecast if reforms continue.

Investors have noticed.

Unfortunately, they have noticed enough that the broad Argentine market is no longer the screaming bargain it was a year ago. Buying the entire market today is not quite the layup it was when everyone was convinced the country was headed for another economic catastrophe.

That means we need to be selective.

The good news is that several Argentine companies listed in the United States still offer cheap valuations, improving fundamentals, and exposure to one of the most dramatic economic turnarounds in the world.

Banks: The Most Compelling Corner of the Market

My favorite hunting ground in Argentina remains the banking sector.

The banking system is tiny relative to the size of the economy. Private sector credit is only a fraction of GDP compared to developed markets. If Argentina merely becomes a somewhat normal country, loan growth could be substantial for years.

The first name to consider is Banco Macro (NYSE:BMA). The bank has spent years operating in an environment that would make most American bankers seek counseling. Inflation, currency controls, economic crises, and political interference have all taken turns attacking profitability. Despite that, Banco Macro remains profitable, well-capitalized, and trades at valuations that still reflect a substantial amount of pessimism.

The second bank worth watching is BBVA Argentina (NYSE:BBAR). It trades at a discount to book value and offers exposure to a recovering banking system without paying growth stock prices. If credit growth accelerates as economic conditions stabilize, earnings power could be far higher than current expectations.

Hard Assets: Real Estate at a Discount

For investors who prefer hard assets to financial assets, look at IRSA (NYSE:IRS).

IRSA owns shopping centers, office properties, and development assets, and trades at a substantial discount to underlying real estate value. Buying IRSA today feels a lot like buying quality real estate in a city everyone assumes will never recover. Sometimes those assumptions prove very expensive.

Energy: The Biggest Long-Term Opportunity

The most obvious growth opportunity in Argentina is energy. The country possesses one of the world’s most important unconventional oil and gas resources in Vaca Muerta. As infrastructure improves and investment increases, production continues to climb.

Pampa Energia (NYSE:PAM) owns a collection of power generation, transmission, and energy assets that make it one of the best ways to participate in Argentina’s energy renaissance. Earnings have been volatile — because this is Argentina and nothing is ever easy — but the long-term outlook remains attractive.

Aggressive investors can also consider YPF (NYSE:YPF). It is essentially a leveraged bet on Argentina’s energy future. The company controls enormous resources and sits at the center of the Vaca Muerta development story. The problem is that it also sits at the center of Argentine politics. Investors need to decide whether the resource opportunity outweighs the political headaches.

Telecom: A Quiet Compounder

Telecom Argentina (NYSE:TEO) benefits from rising broadband demand, fiber expansion, and increasing data consumption. The company recently delivered strong earnings growth as economic conditions stabilized. Telecommunications is not usually an exciting business, but buying a growing telecom at a depressed valuation can be surprisingly profitable.

Income: Where to Look

Income investors often overlook Argentina because dividend payments can be inconsistent. That said, opportunities exist.

IRSA remains one of the more attractive names for investors seeking income. The company has distributed significant cash to shareholders and offers exposure to recovering commercial real estate. Banco Macro also deserves consideration — while bank dividends in emerging markets require patience, Macro’s capital position supports shareholder distributions and buybacks over time.

For infrastructure-oriented investors, Transportadora de Gas del Sur (NYSE:TGS) is worth monitoring. Pipeline businesses tend to generate steady cash flow, and TGS occupies an important position in Argentina’s energy network.

The Risk Is Real. So Is the Opportunity.

Argentina is not a conservative investment. Nobody should confuse Buenos Aires with Omaha.

Currency risk remains real. Political risk remains real. Economic risk remains real. A country does not spend decades making bad decisions and suddenly become Switzerland overnight.

What has changed is that Argentina finally appears to be moving in the right direction. Inflation is falling. Fiscal discipline is improving. Capital controls are fading. Investment is returning. Most investors spent years avoiding Argentina because it was a disaster. The opportunity exists because many of those investors are still acting as if nothing has changed.

If Milei succeeds, the winners are likely to be the banks, the energy companies, and selected real estate operators. Several of the best names are readily available through U.S.-listed ADRs.

Just remember: when investing in Argentina, volatility is not a bug.

It is the national currency.