At the beginning of the year, there was some buzz about why investing in the Brazilian stock market may be a smart move for investors. For one, Brazil has one of the most sophisticated stock market exchanges in the world. Another reason is the country's currency is currently at its lowest level since 2005, when compared to the U.S. dollar.
Premium members are able to use the All-In-One Screener to find undervalued stocks in Latin America and more specifically, which ones are trading in Brazil.
In order to narrow my search down to Latin American stocks specifically, I clicked on the box that says Latin America to give me a list of all 26 undervalued stocks in that region. Out of the 31 listed, here’s a look at stocks traded in the Brazilian market. Please note, I am not saying that these are companies that are from Brazil.
Oracle Corporation (BSP:ORCL34, Financial)
Oracle is currently trading at $132.03 a share and has a business predictability ranking of 4.5 stars out of 5.
Oracle Corporation develops, manufactures, markets, hosts and supports cloud infrastructure, middleware software, application software and hardware systems. The company was incorporated in 2005.
According to the DCF calculator, Oracle's intrinsic value is $148.31 with an 11% margin of safety.
Earnings per share for the trailing 12 months as of February 2015 was $5.86 and its growth rate for the past year was 0.40%. Thus, the P/E ratio is currently 22.52.
The company pays a quarterly dividend. Last October, Oracle paid shareholders ~$0.2 a share. Dividends per share for the trailing 12 months was $0.84. One good sign for investors is the dividend yield of 0.62% is currently close to its 10-year high.
Comcast Corp (BSP:CMCS34, Financial)
Comcast is currently trading at $177.30 a share and also has a business predictability ranking of 4.5 stars out of 5.
Comcast is a global media and technology company that was incorporated in 2001. Its two main businesses are NBCUniversal and Comcast Cable.
According to the DCF calculator, Comcast's intrinsic value is $216.84 and has an 18% margin of safety.
The company's EBITDA per share for the trailing 12 months as of December 2014 was $21.04 and its growth rate for the year was 8.90%.
Shareholders receive a quarterly dividend payout of ~$0.36 a share and the dividend payout ratio was 18%. Dividends per share for the trailing 12 months was $1.36 and its growth rate for the year was 15.40%. As of today, the dividend yield is 1.06%.
United Technologies Corp (BSP:UTEC34)
UTEC is currently trading at $369.40 and has a business predictability ranking of 4 stars out of 5.
United Technologies is a provider of high technology products and services for global aerospace industries as well as building systems.
According to the DCF calculator, the stock’s intrinsic value is $217.21 and has a -70% margin of safety.
As of December 2014, earnings per share for the trailing 12 months was $16.24 and its growth rate for the year was 9.60%. The P/E ratio is currently 22.75.
The company’s current ratio is at a comfortable 1.30, which indicates good short-term financial strength.
Use the All-In-One Screener to find more undervalued stocks trading in Latin America by clicking here.
