The World Cup Watch List: 8 Brazilian Stocks Wall Street Loves

Jessica Beeli |

2014 fifa world cup, investing in world cup stocks, brazilian stocks, best brazilian stocks, best 2014 world cup playsAs sports fans across the globe gather to watch the best athletes in the world battle for the World Cup, Brazil has enjoyed even more attention on the international stage as the 2014 tournament’s host country. So what better stocks to look into than the best-performers from Brazil?

Brazilian equities have been doing particularly well since the June 6 kickoff of the games. With the brightest spotlight on Brazil, this country has seen an influx of more than just soccer enthusiasm.

Particularly in terms of emerging markets, Brazil’s stocks have been soaring. Although a rise in stocks in emerging markets has been widely predicted for next year, Brazil seems to be coming out ahead of the pack.

Despite massive expenses, the World Cup typically brings a boost to national GDP, tax revenue, tourism, jobs and public transportation to the host country. The sporting event also brings a worldwide boost to the host nation’s public image, which is ultimately invaluable. 

Here at Equities.com, we’ve analyzed eight of the best-performing Brazilian companies trading in the U.S. markets that analysts like. These companies carry consensus analyst ratings of buy or better with market caps of at least $10 billion, and are up so far this year.

8. Ultrapar Holdings Inc. (UGP)

Market Cap: $13.07B

Year-to-Date Performance: 0.39%

Sector: Oil & Gas Refining & Marketing

Ultrapar distributes fuels, produces chemicals and integrated logistic solutions. The company has operations in the USA, Brazil, Mexico, Argentina, and Venezuela. Ultrapar also operates drugstores through Extrafarma, with 177 branches in Brazil. Ultrapar is the largest distributor of liquid petroleum gas and the second largest distributor of fuel in the country. Shares are currently trading at $23.78.

7. Companhia Brasileira de Distribuição (CBD)

Market Cap: $12.48B

Year-to-Date Performance: 5.88%

Sector: Grocery Stores

Formerly known as Grupo Pao de Acucar, and still trading as GPA, Companhia Brasileira de Distribuição is in the business of supermarkets and home appliance stores. Headquartered in São Paulo, it is the largest company in Brazil selling food, general merchandise, electronic goods, home appliances and other products. It is also the second biggest online retailer in Brazil. Shares are currently trading at $47.14.

6. Telefonica Brazil (VIV)

Market Cap: $22.14B

Year-to-Date Performance: 9.42%

Sector: Wireless Communications

Telefonica is a group subsidiary of the Spanish Telefonica Group, a worldwide communication conglomerate. Despite a reputation riddled with complaints of subpar customer service, Telefonica is one of the largest companies in Brazil. The telecommunications company, also known as Telefonica Vivo, provides services for fixed and mobile telephony, data transmission and television. Shares are currently trading at $20.72.

5. Brazil Foods S.A. (BRFS)

Market Cap: $20.50B

Year-to-Date Performance: 13.44%

Sector: Meat Products

Brazil Foods is the 10th largest food company in the world. The company was created by a 2009 merger and is based in Itajaí, Brazil. BRF is Brazil’s second largest company in terms of revenue and has a presence in over 110 countries. Shares are currently trading at $23.47.

4. TIM Participacoes S.A. (TSU)

Market Cap: $14.37B

Year-to-Date Performance: 14.26%

Sector: Wireless Communications

TIM Participacoes is a mobile telecommunications company, headquartered in Rio de Janeiro. TIM Participacoes was the first telecommunications company to provide services in all Brazilian states. The Company's offers services including text messaging, Web browsing, video call, downloads, songs, games, television access, voicemail and more.  Shares are currently trading at $29.58.

3. Petróleo Brasileiro S.A. (PBR)

Market Cap: $106.78B

Year-to-Date Performance: 16.43%

Sector: Oil & Gas Drilling & Exploration

This state-owned oil and gas giant is the fourth-largest company in the world. Operating mainly out of South America this company explores for and produces oil and natural gas. Based in Rio de Janeiro, this company leads development of technology for deep-water oil production and conducted the largest share sale in history back in 2010. Petrobas stock seems to be rising with the likelihood of a runoff presidential election. Shares are currently trading at $15.75.

2. Banco Bradesco S.A. (BBD)

Market Cap: $65.9B

Year-to-Date Performance: 20.78%

Sector: Foreign Regional Banks

Banco Bradesco is one of the largest financial services and banking companies in Brazil. This company has always been a pioneer in technology. Back in 1962, Banco Bradesco was the first Latin American Company to buy a computer. Now it is leading Brazil’s ATM biometric reading systems, which enable customers to be identified using the vascular pattern of their hands. Shares are currently trading at $15.16.

1. Itau Unibanco Holding S.A (ITUB)

Market Cap: $75.89B

Year-to-Date Performance: 22.81%

Sector: Foreign Regional Banks

Itau Unibanco is the result of a merger between Banco Itau and Unibanco in 2008 to create the largest financial conglomerate in the southern hemisphere. Based in Sao Paulo, the bank offers a variety of financial services. Similarly to Petrobas, Itau Unibanco has risen in response to the growingly competitive nature of Brazil’s ongoing elections. Shares are currently trading at $15.02.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
PBR PETROLEO BRASILEIIRO SA PETROBRAS 10.77 0.00 0.00 964,709
CBD Companhia Brasileira de Distribuicao ADS 14.69 0.00 0.00 842
BRFS BRF S.A. 14.66 0.00 0.00 200
TSU TIM Participacoes S.A. American Depositary Shares 11.89 0.00 0.00 5,249
UGP Ultrapar Participacoes S.A. (New) American Deposit 19.81 0.00 0.00 878
VIV Telefonica Brasil S.A. ADS 12.64 0.00 0.00 220
BPSAY Banco Popolare Societa Cooperativa ADR (New) 2.93 0.00 0.00 0

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