Seven Brazilian Stocks on a Roll

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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 AmericasABV
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
KO
and Fomento Economico Mexicano
FMX
.
Companhia Siderurgica NacionalSID
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
X
over the past six months.
CosanCZZ
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
BG
and Imperial Sugar
IPSU
.
See also:Five Latin America Stocks for 2012
.
GerdauGGB
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
NUE
and Companhia Siderurgica Nacional.
Itau Unibanco Holding
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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
BBD
and Banco Santander
BSBR
.
TAMTAM
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
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
GOL
.
Ultrapar HoldingsUGP
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
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 UBR is almost 40% higher year to date.
  • Global X Brazil Consumer ETF BRAQ is more than 20% higher year to date.
  • iShares MSCI Brazil Index EWZ is almost 19% higher year to date.
  • Global X Brazil Mid Cap ETF BRAZ is almost 18% higher year to date.
Bearish: Traders may prefer to consider these alternative positions:
  • ProShares UltraShort MSCI Brazil BZQ is trading near the 52-week low.
  • Direxion Daily Latin America Bear 3X Shares LHB is trading near the 52-week low.
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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Posted In: Long IdeasNewsShort IdeasEmerging Market ETFsGlobalTrading IdeasETFsAmBevBanco BradescoBanco SantanderBrazil ETFsBrazil stocksbungeCoca-colaCompanhia de Bebidas das AmericasCompanhia Siderurgica NacionalCosandividend stocksemerging markets ETFsemerging markets stocksFomento Economico MexicanoGerdauGOL LinhasImperial SugarItau Unibanco HoldingLan AirlinesLatin America ETFsLatin America stocksMagellon Midstream PartnersNucorTAMUltrapar HoldingsUnited States Steel
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