EWZ - iShares MSCI Brazil Capped ETF
42.10 -0.20 (-0.47%)
Pre-Market: 8:10AM EDT
| Previous Close | 42.99 |
| Open | 0.00 |
| Bid | 42.05 x 1200 |
| Ask | 42.80 x 2900 |
| Day's Range | 0.00 - 0.00 |
| 52 Week Range | |
| Volume | 0 |
| Avg. Volume | 25,374,712 |
| Net Assets | 8.21B |
| NAV | 42.62 |
| PE Ratio (TTM) | N/A |
| Yield | 2.70% |
| YTD Return | 12.64% |
| Beta (3Y Monthly) | 0.78 |
| Expense Ratio (net) | 0.59% |
| Inception Date | 2000-07-10 |
- Barrons.com
Brazil’s Pension Overhaul Hasn’t Yet Boosted the Stock Market
The stock market and the national currency declined even after July’s first-round vote in a lower house of Congress approving pension reform. The reason? Brazil’s economy stubbornly hasn’t bounced back.
- InvestorPlace
On the Dip, Ambev Stock Looks Attractive but Risky
It would appear there's a strong "buy the dip" case for Ambev (NYSE:ABEV) stock at the moment. Ambev stock has pulled back some 20% in barely a month on almost no news.Source: Daniel Spiess via FlickrReports in Brazilian media this month cited testimony that alleged the company was involved in the country's long-running corruption scandal, often referred to as Operation Car Wash. Ambev has denied any involvement. The company also pointed out that beverage taxes spiked in 2015 -- an increase the bribes ostensibly were meant to prevent. * 7 Tech Industry Dividend Stocks for Growth and Income Meanwhile, Ambev actually posted a blowout second quarter report last month, with Ambev stock touching a 52-week high on the news. A month later, the stock seems on track to touch a 2019 low. With a reported dividend yield of 5.5%, a more reasonable valuation, and potential growth in Latin America and Canada, the decline seems to present an opportunity.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat may be the case. ABEV is cheaper. Growth has been more impressive than it appears. But there are risks here, too -- risks highlighted by the recent decline. Investors should take a look at buying the dip in ABEV stock. They should also understand that the declines can continue. The Case for Ambev StockThere's a lot to like when it comes to Ambev stock. Valuation isn't necessarily cheap: the stock trades at 23.6x trailing twelve-month adjusted EPS. But EV/EBITDA, below 13x, is more attractive.In the context of the industry, those multiples are relatively benign. Anheuser-Busch InBev (NYSE:BUD), who owns over 60% of Ambev, trades at about 12x EV/EBITDA with a much weaker balance sheet. (A-B had to cut its dividend to manage its debt. Ambev has net cash.) Boston Beer (NYSE:SAM) trades at a massive premium to ABEV stock. Constellation Brands (NYSE:STZ,NYSE:STZ.B) trades at 21x forward earnings despite weaker growth of late.Investors usually are willing to pay a premium for beer or spirits companies because growth can last for decades. For a company like Ambev, whose leading brands in Brazil include Skol, Brahma, and Antarctica, that can be the case.Meanwhile, recent performance looks solid. Earnings took a tumble in 2016, owing to the aforementioned tax hike in Brazil. But normalized EBITDA, as the company terms it, increased nearly 9% year-over-year on an organic basis in the first half despite a big jump in input costs. That follows a 14% increase in 2018 on the same basis.To top it off, ABEV stock provides a solid dividend. Like many overseas companies, Ambev doesn't give a consistent payout. (In fact, it hasn't yet declared a dividend for this year, which is unusual.) But the 2018 payout totaled 12.6 cents - suggesting a 2.9% yield.So there's a nice combination of growth, value, and income -- at a cheaper price to boot. The Risks to ABEV StockThat said, the risks here need to be monitored as well. It's tempting to argue that the 20% decline from post-earnings highs came on no news, bribery allegations aside. But that doesn't mean they came for no reason.Over half of the company's profit comes from Brazil. (About 10% comes from Canada, where the company sells Lablatt beer. The remainder comes from elsewhere in Latin America and the Caribbean.) And investors have quickly soured on Brazilian stocks. The iShares MSCI Brazil Capped ETF (NYSEARCA:EWZ) has declined 14% in the past month.A weaker Brazilian real is an issue. But there is real emerging market risk here as well, with Argentina another sore spot. And so the fact that ABEV stock is cheaper than U.S. beer producers may not mean the stock is cheap. It probably should trade at a discount, given macroeconomic uncertainty and higher volatility.The other issue is the overall health of beer. Certainly, U.S. trends don't look particularly positive. Even SAM stock - which has gained over 80% - has benefited from non-beer growth.At the moment, the overall beer market in Brazil, at least, appears to be growing. But craft brewers are making inroads. The former 'set it and forget it' nature of buying beer stocks might be over -- as witnessed by the huge plunge in BUD stock last year.Both risks have hit ABEV stock hard in recent years. The case for ABEV wasn't terribly different last year at $7, or above $6 back in 2014. Returns for most shareholders, dividends included, have been negative over the past five years. Maybe this time is different; maybe ABEV stock finally is too cheap. Investors have said that before.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Industry Dividend Stocks for Growth and Income * 7 Stocks the Insiders Are Buying on Sale * 7 of the Worst Stocks on Wall Street The post On the Dip, Ambev Stock Looks Attractive but Risky appeared first on InvestorPlace.
- Benzinga
Wednesday's Other Rate Cut And The ETF That Could Benefit
The iShares MSCI Brazil Capped ETF (NYSE: EWZ), the largest exchange traded fund dedicated to Brazilian equities, traded slightly higher in Wednesday's after-hours session after the central bank there pared the benchmark Selic rate by 50 basis points to 6%. The $9 billion EWZ, which tracks the MSCI Brazil 25/50 Index, is up 19.35% year to date, or about double the gains of the MSCI Emerging Markets Index.
- Zacks
Country ETFs to Watch as Trade Rout Continues
We discuss some country ETFs which might be in an advantageous position due to the ongoing Sino-US trade war.
- Investor's Business Daily
Stock Market Off; Citigroup Little Changed Despite Earnings Beat
The stock market moved little after bearish news on China's economy and bullish news from Citigroup's second-quarter results. Citigroup, though, seesawed to no gain despite its beat.
- Investopedia
Rally Hesitates on Higher Inflation
Rising inflation put a damper on rate cut expectations. Small caps fell further behind, while Brazilian stocks reached resistance.
- Investor's Business Daily
Brazil Stocks Are Hot Again, But Have Investors Missed The Rally?
With Wall Street rising to record highs, investors may have turned a blind eye to foreign stocks. But Brazil stocks have been on fire.
- Investopedia
Brazil ETFs Hit 52-Week High Amid Pension Reform Vote
Brazil stocks reached a new 52-week high as investors cheered extensive reforms. Trade the country's stocks using these three ETFs.
- Investor's Business Daily
Dow Jones Lags Nasdaq, But Amazon.com Clears Buy Point
While most stock market watchers say a quarter-point cut is an all but done deal, a tiny minority foresee no cut this month. That could test the market's composure.
- Zacks
ETFs to Shine as Brazil Pension Bill Nears Final Approval
We study certain ETFs which might gain from the progress in the pension reform bill.
- Investopedia
3 Country-Specific ETFs That Look Poised to Move Lower
The downside bias shown on the charts of certain country-specific ETFs suggests that prices in these regions could be headed lower.
- Zacks
The Zacks Analyst Blog Highlights: GLD, BTAL, REZ, EWZ and OUSA
The Zacks Analyst Blog Highlights: GLD, BTAL, REZ, EWZ and OUSA
- Zacks
6 ETFs for June
After a tumultuous May, Wall Street had a shaky start to June. Trade tensions, worries about global growth slowdown and pain in the tech space roiled the market.
- Market Realist
Can Dalio’s Bridgewater Repeat Its Outperformance in 2019?
Can Dalio's Bridgewater Repeat Its Outperformance in 2019?Bridgewater AssociatesBridgewater Associates, the largest hedge fund in the world, had 303 positions at the end of the first quarter. Most of the fund is dominated by ETFs. The fund’s top
- Kiplinger
Don't Be Afraid to Invest in Emerging-Markets Stocks
Emerging-markets stocks have been beaten up so badly that they are a good value now.
- Market Realist
Vale’s Production Loss Has Become Its Peers’ Gain—Here’s How
Vale’s Production Loss Has Become Its Peers' Gain—Here’s HowVale’s first-quarter productionVale (VALE) published its first-quarter production report on May 8. With the release of the report, the company’s shipment data have become much
- Market Realist
Are Higher Iron Ore and Pellet Prices the New Normal?
How Cleveland-Cliffs Is Looking after Its Q1 2019 Results(Continued from Prior Part)Pellet premiums to soarDuring Cleveland-Cliffs’ Q1 conference call, CEO Lourenco Goncalves said, “Several people directly or indirectly involved with the
Market RealistCleveland-Cliffs’ Upside: Vale’s Dam Burst and Supply Disruptions
What’s in the Cards for Cleveland-Cliffs’ Q1 Results?(Continued from Prior Part)Vale’s dam burst On January 25, a major disaster struck Vale (VALE) when a dam ruptured at one of its mines in Brazil (EWZ). More than 300 people died when the
- Market Realist
Iron Ore Prices Could Be Supported after Vale’s Mine Restart
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- Market Realist
Vale: No Production Upgrade despite Authorization to Reopen Mine
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Market RealistNetflix Continues to Grow Subscribers Internationally
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- Benzinga
Volatility Still The Name Of The Game With Brazil ETFs
Brazilian stocks are among the more volatile emerging markets fare. Brazilian stocks and EWZ rallied earlier this year as markets cheered the reform-minded agenda of President Jair Bolsonaro, who was elected last October. Since mid-February, EWZ has seen mostly choppy trading and over the past month, the benchmark Brazil ETF is lower by 6.69 percent as investors have questioned Bolsonaro's ability to reform Brazil's pension system, one of the cornerstones of his campaign.
- Market Realist
Yamana Sells Chapada Mine to Lundin Gold and Raises Dividends
Will Yamana’s Chapada Mine Sale Improve Shareholder Returns?Yamana Gold sells Chapada mine Today, Yamana Gold (AUY) announced that it has agreed to sell its fully owned Chapada mine to Lundin Gold (LUNMF) for $1 billion. Chapada is primarily a
Market RealistWhy Goldman Sachs Advises Investors to Take Profits in Iron Ore
Is the Party Just Getting Started for Iron Ore Miners?(Continued from Prior Part)Goldman Sachs raised iron ore price forecastLike most other analysts, Goldman Sachs (GS) also increased its price forecast for iron ore due to the supply disruptions in
- Market Realist
Credit Suisse Is Expecting a Push in Iron Ore Prices on Supply Deficit
Is the Party Just Getting Started for Iron Ore Miners?(Continued from Prior Part)Credit Suisse As iron ore supply disruptions, at least from Vale (VALE), don’t look likely to go away easily, analysts have started another round of upgrades for iron
