Brazilian stocks saw their best January in six years, due largely to strength in retail, utilities, oil and mining. Here's a quick look at some of the Brazilian stocks on a roll now. They are traded on U.S. exchanges and all pay some dividend.
Companhia de Bebidas Das Americas (NYSE:
ABV) ADS are trading about 46% higher than a year ago to near its 52-week high. Also known as AMBEV, this Sao Paolo-based company is a beer and soft drink producer founded in 1888. The $116.7 billion market cap company also has a dividend yield of 1.3%. Its return on equity is 33.4% and its operating margin is higher than those of competitors such as Coca-Cola (NYSE:
KO) and Fomento Economico Mexicano (NYSE:
FMX).
Companhia Siderurgica Nacional (NYSE:
SID) is more than 32% higher year to date, crossing above the 200-day moving average recently, but still more than 34% below the 52-week high. This integrated steel producer is based in Sao Paolo, has a market cap of $15.8 billion and its dividend yield is 5.9%. The return on equity is 50.5% and the long-term EPS growth forecast is 13.9%. The stock has outperformed competitor United States Steel (NYSE:
X) over the past six months.
Cosan (NYSE:
CZZ) is up more than 24% since the beginning of the year despite pulling back about 4% from a recent 52-week high. Based in Sao Paulo, this company is the largest sugar producer in Brazil and also produces ethanol. Its dividend yield is 2.1% and the market cap is $3.7 billion. EPS have grown more than 140% over the past five years. Over the past six months, the stock has outperformed competitors Bunge (NYSE:
BG) and Imperial Sugar (NASDAQ:
IPSU).
See also:Five Latin America Stocks for 2012.
Gerdau (NYSE:
GGB) jumped almost 11% in the past week and is more than 36% higher year to date. This steel producer is seeking to sell 40% of mining unit for $2.5 billion, according to a recent Bloomberg report. This Porto Alegre-based company has a market cap of $18.3 billion and a dividend yield of 2.5%. The long-term EPS growth forecast is 20.4%. Over the past six months, the stock has outperformed competitors Nucor (NYSE:
NUE) and Companhia Siderurgica Nacional.
Itau Unibanco Holding (NYSE:
ITUB) shares are trading about 17% higher than six months ago, including up about 11% in the past month. This was one of the banks recently hit by attacks from Anonymous hackers. The Sao Paulo-based lender has a market cap of $95.5 billion, a long-term EPS growth forecast of 12.9% and a dividend yield of 0.4%. Over the past six months, the stock has outperformed the likes of Banco Bradesco (NYSE:
BBD) and Banco Santander (NYSE:
BSBR).
TAM (NYSE:
TAM) shares are trading more than 14% higher year to date but still more than 8% below the 52-week high. The airline is in the process of merging with Lan Airlines (NYSE:
LFL), which is based in Chile. TAM has a dividend yield of 3.3% and the operating margin is better than the industry average. Revenues in 2011 are expected to be up 13.3% year over year. Over the past six months, the stock has outperformed competitors Lan Airlines and GOL Linhas (NYSE:
GOL).
Ultrapar Holdings (NYSE:
UGP) is up more than 21% year to date, but has pulled back about 2.5% from a recent 52-week high. The petrochemicals company saw flat EPS in Q3 and reports next on February 23. Based in Sao Paulo, the company has a market cap of $2.8 billion, a dividend yield of 2.7% and a long-term EPS growth forecast of 20.0%. The recent surge helped the stock outperform peers such as Magellon Midstream Partners (NYSE:
MMP) over the past six months.
See also: Brazil's Stealthy ETF Studs.
ACTION ITEMS:
Bullish: Investors interested in exchange traded funds focused on Brazil might want to consider the following trades:
- ProShares Ultra MSCI Brazil (NYSE: UBR) is almost 40% higher year to date.
- Global X Brazil Consumer ETF (NYSE: BRAQ) is more than 20% higher year to date.
- iShares MSCI Brazil Index (NYSE: EWZ) is almost 19% higher year to date.
- Global X Brazil Mid Cap ETF (NYSE: BRAZ) is almost 18% higher year to date.
BGBunge Global SA
$92.26-%
BRAZGlobal X Brazil Active ETF
$28.201.83%
BSBRBanco Santander (Brasil) SA
$5.85-0.20%
BZQProShares UltraShort MSCI Brazil Capped
Not Available-%
EWZiShares MSCI Brazil ETF
Not Available-%
FMXFomento Economico Mexicano SAB de CV
$102.08-%
GGBGerdau SA
$3.70-1.86%
ITUBItau Unibanco Holding SA
$7.200.14%
KOCoca-Cola Co
$70.440.10%
NUENucor Corp
$162.260.15%
SIDCompanhia Siderurgica Nacional
$1.74-%
UBRProShares Ultra MSCI Brazil Capped
$26.18-5.97%
UGPUltrapar Participacoes SA
$3.73-%
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