Brazilian oil company Petroleo Brasileiro ( PBR) has had a buy rating since September 2005. The company's revenue growth has outpaced the industry average and its stock price has increased by 88.27% in the 12 months prior to Sept. 27. And while any stock can fall in a broad market decline, it should continue to move higher. Petrobras' stock is also attractively valued. Its net income increased and earnings grew in the second quarter compared with the same period last year. These strengths outweigh the company's somewhat disappointing return on equity.
Agricultural and commercial equipment manufacturer Deere ( DE) has been rated a buy since August 2005. It recently completed the acquisition of Lesco, strengthening its foothold in the American market, and plans to expand its financial services arm into Canada. Deere also entered into a definitive agreement to acquire Ningbo Benye Tractor & Automotive Manufacture to expand its small tractor manufacturing business in China. This acquisition will enhance its product line and worldwide capacity to produce low-horsepower tractors. Deere is well-positioned to benefit from a surge in corn production driven by increased demand for ethanol. Risks include adverse weather conditions, which could hurt farmers' production and income and leave them with less money to spend on new equipment.