5 Great Emerging Market Picks For 2017

Meanwhile, the peso has fallen to unprecedented lows following Trump’s victory. This has increased the attractiveness of the currency among its Latin American contemporaries. The country’s central bank, the Bank of Mexico, has adopted a hawkish stance which could push up inflows further. Additionally, market watchers now believe that the new U.S. presidency may not be as protectionist as was earlier believed.

Our Choices

Apart from offering the benefits of diversification, emerging market stocks offer the promise of strong returns. The best bets of the year are from markets benefiting from an improving political climate which also have the ability to withstand external shocks.

Stocks from Brazil, Mexico, Chile and South Africa are clearly among the top choices. We have narrowed down our search to the following stocks based on a good Zacks Rank and other relevant metrics.

Vale S.A. (VALE - Free Report) is one of the world's largest producers and exporters of iron ore and pellets, based in Rio de Janeiro, Brazil.

Vale has gained 141.4% over the last one year, underperforming the Zacks Mining - Iron Market sector, which has gained 145.5% over the same period. However, it has a Zacks Rank #1 (Strong Buy). The company has expected earnings growth of more than 100% for the current year. Its earnings estimate for the current year has improved by 23.2% over the last 30 days. This provides a good opportunity to buy the stock given that there is significant upside potential

Braskem S.A. (BAK - Free Report) is a producer and seller of thermoplastic resins based in Sao Paolo, Brazil

Braskem has expected earnings growth of 39.8% for the current year. Its earnings estimate for the current year has improved by 6.1% over the last 30 days. The stock has returned 60.1% over the last one year, outperforming the Zacks Oil and Gas - Integrated - International Market sector, which has gained 20% over the same period. The stock has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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