Markets
BAK

The Zacks Analyst Blog Highlights: Vale, Braskem and Enbridge

Evaluating market performance charts

For Immediate Release

Chicago, IL - June 21, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Vale ( VALE ), Braskem ( BAK ) and Enbridge ( ENB ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Monday's Analyst Blog:

The World Enjoys the Cheap Seats

Obvious to all, the U.K.'s Brexit vote trumps all indicators. That controversial direct democracy vote determines the U.K's status as a European Union country this Thursday, and likely much else down the road. Don't underestimate the consequences.

While the actual Brexit referendum vote dominates this Global Week Ahead, polls and bookies will actively and fiercely trade the result beforehand. That makes any share buying this week a tricky -- but not unworthy -- task. Expect most long-term Europe and U.K. hands to sit on their hands.

I found it interesting to note the damage control going on around the Brexit event.

  • Mario Draghi speaks to the European Parliament on Tuesday.
  • Janet Yellen speaks to a Senate Banking Committee on Tuesday too.
  • The ECB governing council will meet in Frankfurt on Thursday.

There are, equally obviously, plenty of centrally organized plans to handle any fallout inside the U.K. These will be discussed openly during the week. I haven't seen any listing of the Bank of England's schedule. That groups' vigilance is a foregone conclusion.

The BoE will surely act in some way if the Brexit vote is for "leave" and swift consequences are seen in the U.K. financial markets, particularly trading on the U.K. pound. They will breath a sigh of relief for a "stay" status quo. So too will David Cameron and George Osborne.

One can't help but wonder if the remaining Brexit theatre is a tragic comedy, a drawn-out drama, or more like a short-term action movie, with lots of explosions and no deaths.

The 3-month U.K. pound low is $1.40. News about a turn up in Brexit "stay" polling sent it back above $1.46 on Monday, June 20th. That's the top of the recent U.K. pound trading range. It's anyone's guess where it heads if "leave" wins the actual vote on Thursday, June 23rd. U.K. pound bears bandy about a FX rate of $1.25. That sounds too low. Most fast money is already parked outside the pound. A "stay" vote likely gets it above $1.50.

This latest Brexit 'risk-off' pullback means the moment is timely for non-U.S. share shopping -- away from Europe and the U.K.

3 non-U.S. Materials and Energy sector stocks look good to me. Each pick offers great share valuations and a nice dividend. Strengthening seen in underlying commodity prices firms up fundamental EPS and revenue growth support.

(1) Brazil's Vale ( VALE ) trades at $4.46 a share. This iron miner is back to a Zacks #1 Rank (Strong Buy). That bodes well for iron mining more globally. The stock has a Zacks VGM score of B, largely driven by a B in Zacks Value. The dividend is 2.04%. This pick depends on the China outlook more than the others.

(2) Brazil's Braskem ( BAK ) is trading back at $11.32 a share. It is back to a Zacks #1 Rank too. This is Latin America's largest chemical conglomerate. The Zacks VGM score of A is good. This stock has been range trading in recent months. Shares could be heading back to $15 a share in the next 'risk-on' market surge. The dividend of 5.94% is attractive for long-term income portfolios.

(3) Canada's Enbridge ( ENB ) operates the world's longest crude oil and liquids pipeline system. I have mentioned this stock before. The Zacks VGM score is B. There is a nice upward trading trend setting up, giving it a Zacks Momentum score of A. The dividend of 4.11% is very attractive.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros .

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

VALE SA (VALE): Free Stock Analysis Report

BRASKEM SA (BAK): Free Stock Analysis Report

ENBRIDGE INC (ENB): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BAK ENB VALE

Other Topics

Stocks

Latest Markets Videos