We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Investment Ideas feature highlights: iShares MSCI Brazil ETF and Petroleo Brasileiro S.A. Petrobras
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 12, 2022 – Today, Zacks Investment Ideas feature highlights iShares MSCI Brazil ETF (EWZ - Free Report) and Petróleo Brasileiro S.A. Petrobras (PBR - Free Report) .
Emerging Market Energy Company Flashes Strong Buy Signal
“Those who do not study the past will repeat its errors. Those who study it will find other ways to err.” – Bob Farrell
Given the current volatility in U.S. markets, individual stocks can decline more than 10% on any given day. In this choppy, downward-trending environment, profiting from the long side on domestic stocks is very difficult. In contrast to the severe bear markets experienced by the major U.S. indexes, emerging markets have presented opportunities that are performing much better as we head deeper into the final quarter of the year.
After over a decade of underperforming, many emerging markets have finally started to display relative strength versus U.S. equities. A historic bull run that culminated in the COVID-19 melt-up (exacerbated by overly accommodative fiscal and monetary policies) left domestic stocks unwanted and overvalued. And while 2022 hasn’t been kind to most U.S.-based companies, it’s a completely different story when it comes to emerging markets.
Many emerging markets were undervalued prior to the beginning of this year. As such, they’ve weathered the global slowdown relatively well, and their stocks haven’t been hit nearly as hard. In fact, in some cases, individual stocks in these markets have flourished.
The iShares MSCI Brazil ETF is an example of an emerging market ETF that has outperformed this year. EWZ seeks to track the investment results of an index composed of Brazilian equities. The iShares MSCI Brazil ETF has risen nearly 20% this year, all while the major U.S. markets continue to hover in a deep bear market. EWZ contains a diverse set of companies spanning many different sectors.
We’re going to explore one company within the EWZ ETF that is standing out above the rest. This company represents over 7% of the total EWZ holdings. It’s also part of the Zacks Oil and Gas – Integrated – Emerging Markets industry group, which currently ranks in the top 36% out of more than 250 industry groups. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months.
Digging a bit deeper, the industry has returned north of 46% this year versus a more than 23% loss for the general market.
Let’s take a closer look at one individual stock within this group that is flashing signs of outperformance.
Petróleo Brasileiro S.A. Petrobras
Petróleo Brasileiro explores for, produces, and sells oil and gas globally. PBR is engaged in the prospecting, drilling, refining, processing and transporting of crude oil and natural gas. One of Brazil’s energy giants, PBR was incorporated in 1953 and is based in Rio de Janeiro, Brazil.
PBR has exceeded earnings estimates in each of the past two quarters. The oil and gas company most recently posted Q2 EPS back in July of $1.39/share, a 21.93% surprise over the $1.14/share consensus estimate. Furthermore, the company pays an enviable $3.60 (25.3%) dividend and has a market capitalization of nearly $93 billion.
The stock has performed admirably this year, with PBR shares advancing more than 83%. The upward-trending pattern is showing no signs of a reversal at this point, and it’s likely that higher highs are in store.
Analysts are expecting full-year EPS estimates to rise 128.15% this year to $5.43/share. Revenues are projected to increase 45.73% to $122.37 billion. PBR stock boasts a highest possible ‘A’ rating in each of our Zacks Growth, Value, and Momentum Style Score categories. It’s not difficult to see why this stock is a compelling investment, particularly in this difficult market environment.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Zacks Investment Ideas feature highlights: iShares MSCI Brazil ETF and Petroleo Brasileiro S.A. Petrobras
For Immediate Release
Chicago, IL – October 12, 2022 – Today, Zacks Investment Ideas feature highlights iShares MSCI Brazil ETF (EWZ - Free Report) and Petróleo Brasileiro S.A. Petrobras (PBR - Free Report) .
Emerging Market Energy Company Flashes Strong Buy Signal
“Those who do not study the past will repeat its errors. Those who study it will find other ways to err.” – Bob Farrell
Given the current volatility in U.S. markets, individual stocks can decline more than 10% on any given day. In this choppy, downward-trending environment, profiting from the long side on domestic stocks is very difficult. In contrast to the severe bear markets experienced by the major U.S. indexes, emerging markets have presented opportunities that are performing much better as we head deeper into the final quarter of the year.
After over a decade of underperforming, many emerging markets have finally started to display relative strength versus U.S. equities. A historic bull run that culminated in the COVID-19 melt-up (exacerbated by overly accommodative fiscal and monetary policies) left domestic stocks unwanted and overvalued. And while 2022 hasn’t been kind to most U.S.-based companies, it’s a completely different story when it comes to emerging markets.
Many emerging markets were undervalued prior to the beginning of this year. As such, they’ve weathered the global slowdown relatively well, and their stocks haven’t been hit nearly as hard. In fact, in some cases, individual stocks in these markets have flourished.
The iShares MSCI Brazil ETF is an example of an emerging market ETF that has outperformed this year. EWZ seeks to track the investment results of an index composed of Brazilian equities. The iShares MSCI Brazil ETF has risen nearly 20% this year, all while the major U.S. markets continue to hover in a deep bear market. EWZ contains a diverse set of companies spanning many different sectors.
We’re going to explore one company within the EWZ ETF that is standing out above the rest. This company represents over 7% of the total EWZ holdings. It’s also part of the Zacks Oil and Gas – Integrated – Emerging Markets industry group, which currently ranks in the top 36% out of more than 250 industry groups. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months.
Digging a bit deeper, the industry has returned north of 46% this year versus a more than 23% loss for the general market.
Let’s take a closer look at one individual stock within this group that is flashing signs of outperformance.
Petróleo Brasileiro S.A. Petrobras
Petróleo Brasileiro explores for, produces, and sells oil and gas globally. PBR is engaged in the prospecting, drilling, refining, processing and transporting of crude oil and natural gas. One of Brazil’s energy giants, PBR was incorporated in 1953 and is based in Rio de Janeiro, Brazil.
PBR has exceeded earnings estimates in each of the past two quarters. The oil and gas company most recently posted Q2 EPS back in July of $1.39/share, a 21.93% surprise over the $1.14/share consensus estimate. Furthermore, the company pays an enviable $3.60 (25.3%) dividend and has a market capitalization of nearly $93 billion.
The stock has performed admirably this year, with PBR shares advancing more than 83%. The upward-trending pattern is showing no signs of a reversal at this point, and it’s likely that higher highs are in store.
Analysts are expecting full-year EPS estimates to rise 128.15% this year to $5.43/share. Revenues are projected to increase 45.73% to $122.37 billion. PBR stock boasts a highest possible ‘A’ rating in each of our Zacks Growth, Value, and Momentum Style Score categories. It’s not difficult to see why this stock is a compelling investment, particularly in this difficult market environment.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.