NEW YORK ( TheStreet) - Recently Luiz Inacio Lula da Silva, Brazil's outgoing presidentl, claimed his country is destined to be the fifth-largest economy by 2016. Now touted as the eight-largest economy, Brazil could lead the transition from the oil era. Rising income levels and declining unemployment rates boosted consumption levels. Brazil's central bank expects gross domestic product to grow at more than 7% in 2010, and one of the foremost reasons for this strong growth is the improving credit scenario. In a recent report, Brazil's central bank said it expects to close the year with $30 billion foreign direct investments. Although annual inflation is seen spiraling above 5%, analysts foresee the rate remaining within the central bank's mandated limit, and this could be a positive factor for stock markets. In recent months, Brazilian banks saw robust demand for loans, both personal and from small and medium enterprises. Meanwhile, earnings of metals and mining companies grew at a brisk pace during 2010, with analysts expecting the momentum to continue in 2011 as well. The country's oil giant Petroleo Brasileiro (Petrobras) ( PBR) is exploring deep water reserves to meet bulk energy requirements. We have identified 10 stocks across sectors like banking, commodities, telecommunication, and transport, which investors can consider for diversifying their portfolios. These stocks will likely generate 16-33% gains during 2011, according to analysts' consensus estimates. The stocks are stacked in terms of upside, great to greatest.