Stocks got hammered yesterday, but investors have been shopping for value south of the border.
Latin American food companies, Latin American utilities, and Latin American banks were the three strongest groups on optionMONSTER's proprietary researchLAB market scanner. They rose more than 2 percent on average as the S&P 500 slid more than 1 percent, continuing a pattern of outperformance that started more than a month ago.
It reflects a new trend as buyers target emerging-market stocks and unwind positions in former leaders the biotechnology, media, and e-commerce areas. Other companies from developing countries have also been strong, but these three Latin American groups have benefited the most.
Centrais Eletricas Brasileiras leads the move, running about 50 percent in the last month. The stock is down more than 80 percent from its highs in early 2011 and trades at less than one-fifth of book value. Based in Rio de Janeiro, EBR owns hydroelectric thermal and nuclear plants, along with power transmission and distribution lines.
Argentina's Banco Macro is the second-best performer in the last month, according to researchLAB. It trades for about book value and has a forward price-earnings ratio of about 5 times. Profit more than doubled in the last 12 months as revenue surged 64 percent. BMA started rallying before most other emerging stocks and has doubled since last summer.
Grupo Pao de Acucar is the strongest in the food group. CBD has a gain of more than 14 percent in the same period that BMA has rallied.
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