7/11/2014 9:45 PM ET
$7 beer stock among 10 hot picks
You can own a share of Brazilian brewer AmBev SA, which appears on StockScouter's latest list of recommended picks, for about the price of a beer.
Compiled from StockScouter ratings by Verus Analytics
With billions of dollars and untold emotions invested in hosting the 2014 World Cup, Brazilians had high hopes for their national team -- hopes that were dashed and then trampled upon when Germany humiliated Brazil 7-1 in the semifinal round.
Fans cursed, and cried. But unlike in most other countries, Brazil's stock market actually rallied a day after the defeat.
Alex Edmans, a professor at London Business School and the Wharton School of the University of Pennsylvania who has studied the impact of major sporting events on national markets, told the Associated Press that the crushing loss "was so bad that investors think it significantly increases the chances that socialist President Dilma Rousseff will be ousted in October's elections and be replaced by Aecio Neves, the leader of the more pro-business PSDB party."
President Rousseff was widely criticized for spending so much money on World Cup preparations while the broader Brazilian economy floundered. But though the world's largest sporting event went off without a hitch, Brazilians are in no mood to celebrate.
Should they instead decide to collectively drown their sorrows, perhaps AmBev S.A. (ABEV), Brazil's largest brewery, will be the beneficiary. AmBev S.A. produces and distributes its own Brahma beer, as well as Anheuser Busch-InBev (BUD) brands and PepsiCo (PEP) products in its home country and elsewhere. The stock, which trades for just $7, pays a generous 3.3 percent yield.
AmBev S.A. gets a '10' from the StockScouter rating system on MSN Money, the highest score possible. Based on StockScouter’s analysis, shares of ABEV are expected to significantly outperform the market over the next six months with less than average risk.
Read the full Scouter reports on AmBev S.A. here.
StockScouter Top 10 for July 11
Activision Blizzard (ATVI)
KB Homes (KBH)
ON Semiconductor (ONNN)
Taiwan Semiconductor Manufacturing (TSM)
AmBev S.A. (ABEV)
Breweries and beverages
Bed Bath & Beyond (BBBY)
News Corp. (NWSA)
StockScouter beats the market
We think the StockScouter rating system developed by Verus Analytics for MSN Money is one of the best tools you can use when you're trying to decide where to invest.
StockScouter looks for stocks whose business fundamentals, price behavior, valuation and stock-ownership characteristics appear to predict a rising price in the future, based on how those factors have influenced stock prices in the past.
The system assigns each stock an expected six-month return and balances that return against the stock's expected volatility.
Scouter rates stocks on a scale of 1 to 10, and ratings can change daily. Ratings and data in the chart above were current as of this article's publication date.
In addition to the daily top 10 list described above, StockScouter is used by investment research firm Verus Analytics (previously known as the quantitative business unit of Gradient Analytics) to generate a monthly benchmark portfolio of stocks that, refreshed monthly, has outperformed the market since its inception in August 2001.
An investor who began in 2001 by investing in each of the benchmark portfolio's top 10 stocks at the start of the month, selling them at the end of the month and then starting fresh with a new group of 10 stocks, would have generated returns, before trading costs and taxes, of 1,057 percent through May 31, 2014.
Writer Jon Markman, at the time a columnist for MSN Money, collaborated with company researchers on the tool.
Markman suggested rolling over the top 10 stocks every six months to hold down trading costs, a strategy that might be a better fit for most investors; that would yield different results, which would vary based on your starting point.
Performance through May 31, 2014
Full 50 position portfolio
Top 10 portfolio
Inception: August 2001
VIDEO ON MSN MONEY
Germany @ 80.62 million people takes the World Cup in Soccer (the United States @ 316.13 million is unable to compete to the end.........geeeze).
Have a German Beer instead to support their winning!!! Way to go Germany!!!
Nobody has followed it at MSN. So nobody has achieved 20% return since 2001 or the 17% return for the 6 month thing.
Just forget it.
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Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
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