Emerging market stocks to buy
- XP (XP)
- Baozun (BZUN)
- China Mobile (Ticker: CHL)
- Gazprom (OGZPY)
- Eletrobras (EBR)
The financial services company is breaking into the buttered down brokerage business in Brazil, which is dominated by big banks. In September, XP announced that it was eliminating brokerage fees for online stock trading in Ricoh, its only online solution for self-directed investors. The company also said it was reducing those fees by 75% for online stock trading on XP Direct. For its most recent quarter, XP reported 55-year annual revenue of 2.2 billion reais and gross profit, up 53% over the same period.
According to Stanasulovich, the China-based e-commerce company, Bauzen is worth considering. The company helps brands implement their e-commerce strategies by selling their products directly to consumers or providing services. As the epidemic continues, e-commerce is an important way for many people to buy goods while maintaining a collective distance. This seems to have benefited Bauzen. The company’s third-quarter total revenue rose 21.7 percent to 26 269.4 million in the same period last year, compared to a net profit of 64.2 percent. That’s up 26.3 percent from second-quarter sales of 30 304.6 million and a 78.6 percent increase in net income. It is also worth noting that Bowzen’s first-quarter performance during the early days of the epidemic at a time when global markets were running out of tanks increased gross net income by 18.4%.
China Mobile (Ticker: CHL)
As an example of comparative bargaining that investors want to see abroad, Dave Ebben, chief investment officer, Copernicus Global Investors, pointed to China Mobile, which he says is Verizon Communications (VZ). Offer a better price than Both companies have strong market share and world-class technology, but they say the price of China Mobile is cheaper – the price-to-earnings ratio is close to 6.9, compared to Verizon’s PE ratio of 14. Another thing to consider is that China Mobile’s current profitable production is about 7%, while Verizon’s profit is only 4%.
Keep in mind commodity prices and foreign exchange prices.
Aside from the company’s individual affairs, emerging market investors often need to focus on currency and commodity fluctuations in ways they do not with developed countries. This is because emerging market economies rely heavily on commodity exports. When commodity prices fall, so do exports. And the country’s currency could fall, for example, the US dollar, making it harder for local companies to repay bad debts. You can’t talk about emerging markets without talking about BRICS, Brazil, Russia, India, and China. As the world’s largest economies, it may seem strange that all four are considered emerging markets. But keep in mind that their GDP per capita is still relatively low.
With 16% of the world’s natural gas reserves and 71% in Russia, Gazprom says it has the largest commodity reserves in the world. These deposits are also low-cost, Aubin said. Given this background and the opportunities to sell gas to Europe and China, he says the stock is surprisingly cheap. He added that the company was “one of the least expensive large-cap stocks in the world.” The company also has a yield of 8.2%, which is especially attractive when the benchmark 10-year Treasury note has a revenue of less than 1%.
Centris Electricals Brasilia, also known as Eletrobras, is the largest electric power company in Latin America. Abyan likes emerging market stocks because it is one of the world’s leading producers of cheap, greenhouse gas-free hydropower. Brazil’s economic growth – Latin America’s largest economy – is in a recovery mode after it plunged into recession in 2015 due to factors in the prices of Brazil’s major oil, sugar, coffee, and metals commodities. Low cost included. But the thing about utilities is that they are often considered defense stocks because homes need electricity, regardless of what the economy is doing, in generating and transmitting electricity in Latin America’s largest economy. The big role of Elatrobus has been left in a relatively good position. To put an end to this, Aubin says that Eletrobras is still doing cheap business today.