This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Brazilian Stocks for Long-Term Gains

Stocks in this article: CPLSIDBRFSGFAITUB

Gafisa

Brazilian homebuilder Gafisa (GFA) is now suffering from what U.S. homebuilders saw a few years ago. Demand for housing was very hot until a few quarters ago, when rising interest rates made it much tougher for people to secure new mortgages. Gafisa's stock, which traded in the mid-teens in 2010, has been in freefall and now trades below $6. The company began construction on 60% fewer homes in the fourth quarter of 201 than it did in 2010. (And 20% fewer on a full-year basis).

But the tide may turn in coming quarters. The Brazilian central bank has now cut interest rates in four straight meetings, and has signaled intentions to bring rates down further in coming quarters. Rates peaked at 12.5% last summer and could end up in the high single digits by the end of the year. (Brazil's fears of inflation will always keep this number high: it only got as low as 8.75% in 2009 at the depth of the economic crisis).

Don't expect a quick pick-up in Gafisa's business, but analysts spot an upturn beginning in 2013, when sales and profits should gain grow at a double-digit pace. That's a trend that can be sustained for an extended period in light of the powerful tailwind in place for the Brazilian economy. Shares trade for about six times projected 2013 profits, a clear bargain for those focused on the long-term.

To see these stocks in action, check out the Brazil Long-Term portfolio on Stockpickr.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

Stockpickr is a wholly owned subsidiary of TheStreet.com.

At the time of publication, author had no positions in stocks mentioned.

4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs