Brazil’s Market Is Bargain-Priced. 5 Stocks to Consider.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 18 2024
0mins
Source: Barron's
Brazil's Economic Growth and Investor Sentiment: Brazil's economy is unexpectedly growing at 3% this year, leading to a Moody's upgrade of its sovereign debt. However, investor confidence is low due to fears surrounding President Lula's policies and rising interest rates, which have negatively impacted the stock market and currency.
Political Landscape and Investment Strategies: Lula's government faces challenges from a center-right Congress, and there are concerns about potential overspending ahead of the 2026 elections. Investors are focusing on select stocks and sectors, such as utilities and oil, while remaining cautious amid a negative market sentiment.
Analyst Views on ARCO
Wall Street analysts forecast ARCO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARCO is 8.50 USD with a low forecast of 8.50 USD and a high forecast of 8.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 7.880
Low
8.50
Averages
8.50
High
8.50
Current: 7.880
Low
8.50
Averages
8.50
High
8.50
About ARCO
Arcos Dorados Holdings Inc. is a McDonald's franchisee. The Company operates or franchises over 2,140 McDonald's-branded restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the United States Virgin Islands of Saint Croix and Saint Thomas, and Venezuela; the North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and the South Latin America division (SLAD), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Its menus feature over three tiers of products: entry-level options, such as its Big Pleasures, Small Prices offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
