Brazilian Stocks Are Hot

We often hear of emerging markets as a good place for investors because they offer the possibility of high growth at a time when more "mature" national economies may not feature oversized returns. Of course, emerging markets can also be tricky as currency fluctuations, social unrest, corruption, lack of regulation, etc. may exist in ways that are both different and potentially more damaging to stocks.

But, for those willing to take the risk, the rewards can be high even when their home market may be declining or stagnant. Some of the most popular emerging markets are the so-called "BRIC" countries (Brazil, Russia, India, China.) From our models' perspective, one of the hottest BRIC markets right now is Brazil. We have notice many Brazilian companies showing up in our screens for top forecast stocks lately, and some of them have also provided a performance boost on our various portfolio strategies.

So, for today's bulletin, we used our database to search for the top-rated BUY and STRONG BUY stocks from Brazil that trade on US stock markets. Here you can find "the best of both worlds," stocks from foreign countries that trade on US exchanges and thus must meet the more rigorous regulatory requirements while still offering the potential benefits of emerging-market companies.

Keep in mind that Brazil recently has had a variety of corruption scandals dealing with the national oil company and other firms--and they removed their President when her investigation into that corruption began to ruffle a few too many highly-placed "feathers." Their economy has been in trouble/recession, and the political scandal has certainly not helped. But, the stocks we can track from Brazil have outperformed over the past year.

Below, you can see our latest data for the top-ten stocks in our systems from Brazil. These companies are all rated STRONG BUY, and-- as you can see from the LTM Return data, they have all been on a tear for the past year with returns ranging from 25% to a whopping 338%. We do not have full data--both valuation and forecast--for all of these stocks, keep that in mind.

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

1-M Forecast Retn

1-Yr Forecast Retn

P/E Ratio

Sector Name

BDORY

BANCO DO BRASIL

7.74

N/A

58.28%

1.49%

17.98%

4.86

Finance

SBS

SABESP -ADR

9.6

-0.95%

112.39%

1.43%

17.30%

10.55

Utilities

CZZ

COSAN LTD-A

7.93

N/A

116.08%

1.41%

17.01%

10.94

Basic Materials

BBDO

BANCO BRADE-ADR

9.16

N/A

36.16%

1.32%

15.95%

6.62

Finance

CIG

CEMIG SA -ADR

2.68

N/A

32.67%

1.28%

15.49%

4.07

Utilities

BAK

BRASKEM SA

16.35

9.36%

66.50%

1.18%

14.23%

11.68

Oils-Energy

ELP

COPEL-ADR PR B

10.83

N/A

25.35%

1.17%

14.03%

6.51

Utilities

ITUB

BANCO ITAU -ADR

11.88

11.70%

55.91%

1.13%

13.58%

11.21

Finance

BBD

BANCO BRADESCO

9.58

25.08%

68.88%

1.11%

13.33%

11.27

Finance

EBRYY

ELETROBRAS-ADR

6.44

N/A

338.10%

1.11%

13.31%

N/A

Utilities

Here is more in-depth data on Banco de Brasil (BDORY), our leading Brazilian STRONG BUY as of today:

Banco do Brasil S.A (BDORY ) provides retail and commercial banking services in Brazil and internationally. The services offered includes consumer, commercial, and agribusiness loans, asset management, foreign exchange, insurance, lease financing and Internet banking services. The Company also offers services including credit recovery, consortium administration, development, manufacture, commercialization, rent, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies. Banco do Brasil S.A is headquartered in Brasilia, Brazil.

Recommendation: ValuEngine continues its STRONG BUY recommendation on BANCO DO BRASIL for 2016-10-11. Based on the information we have gathered and our resulting research, we feel that BANCO DO BRASIL has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Company Size.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

7.86 1.49%

3-Month

8.03 3.80%

6-Month

8.16 5.44%

1-Year

9.13 17.98%

2-Year

8.13 5.01%

3-Year

7.81 0.88%

 

Valuation & Rankings

Valuation

n/a

Valuation Rank

n/a

1-M Forecast Return

1.49%

1-M Forecast Return Rank

100

12-M Return

58.28%

Momentum Rank

92

Sharpe Ratio

-0.22

Sharpe Ratio Rank

32

5-Y Avg Annual Return

-12.36%

5-Y Avg Annual Rtn Rank

29

Volatility

55.59%

Volatility Rank

32

Expected EPS Growth

10.04%

EPS Growth Rank

40

Market Cap (billions)

22.18

Size Rank

95

Trailing P/E Ratio

4.86

Trailing P/E Rank

99

Forward P/E Ratio

4.41

Forward P/E Ratio Rank

98

PEG Ratio

0.48

PEG Ratio Rank

60

Price/Sales

0.41

Price/Sales Rank

86

Market/Book

1.14

Market/Book Rank

72

Beta

2.73

Beta Rank

5

Alpha

0.28

Alpha Rank

87

Market Overview

Summary of VE Stock Universe

Stocks Undervalued

53.42%

Stocks Overvalued

46.58%

Stocks Undervalued by 20%

21.31%

Stocks Overvalued by 20%

14.94%

Sector Overview

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Industrial Products

0.68%

-2.37%

15.94%

5.03% overvalued

12.76%

23.20

Computer and Technology

-0.92%

-1.65%

16.55%

4.15% overvalued

8.16%

29.81

Oils-Energy

0.67%

2.10%

21.33%

3.82% overvalued

-3.55%

25.54

Utilities

-0.70%

-2.10%

9.00%

2.56% overvalued

11.52%

21.37

Multi-Sector Conglomerates

0.73%

-1.04%

6.59%

1.57% overvalued

1.01%

20.76

Consumer Staples

0.56%

-1.90%

8.74%

0.93% overvalued

8.72%

23.78

Finance

0.11%

-1.10%

6.36%

0.37% undervalued

3.13%

16.50

Aerospace

-0.85%

-0.78%

1.93%

0.93% undervalued

5.40%

17.93

Basic Materials

2.16%

-2.83%

40.60%

1.36% undervalued

50.87%

28.33

Business Services

0.25%

-1.95%

12.43%

1.92% undervalued

-0.12%

24.31

Transportation

-0.11%

0.18%

11.33%

2.77% undervalued

-14.85%

16.77

Consumer Discretionary

-0.50%

-1.27%

8.16%

3.54% undervalued

-0.24%

22.93

Auto-Tires-Trucks

-0.84%

-0.39%

7.16%

4.60% undervalued

3.75%

15.11

Medical

-1.49%

-0.78%

1.94%

4.79% undervalued

-7.03%

25.72

Construction

0.26%

-1.45%

29.58%

5.56% undervalued

13.36%

19.71

Retail-Wholesale

0.93%

-0.57%

0.04%

6.08% undervalued

-0.28%

21.95

Valuation Watch: Overvalued stocks now make up 46.58% of our stocks assigned a valuation and 14.94% of those equities are calculated to be overvalued by 20% or more. Six sectors are calculated to be overvalued.

Disclaimer: ValuEngine.com is an independent research ...

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