Vermilion's analysts believe Brazil continues to emerge as the short-term global leader in Latin America and that there are plenty of individual opportunities there.
The list of their "bottom-fishing candidates" includes:
- Banco Bradesco ( BBD , quote )
- Banco do Brasil ( BDORY , quote )
- Braskem ( BAK , quote )
- Metalurgica Gerdau ( GGB , quote )
- Vale ( VALE , quote )
- Usinas Siderugicas de Minas Gerais ( USNZY , quote )
This list also includes non-U.S.-traded stocks such as Cyrela Brazil Realty (the largest of Brazil's real-estate developers) and Lojas Americanas.
Although Brazil is the main focus of the list, Vermilion highlights that Colombia and Peru are beginning to break out from long-term bull flag patterns. "While they are not the most-liquid markets, it adds to our conviction that a tradable recovery is underway in Latin/South America," the analysts comment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.