Share in Latin America's billionaire boom
As the middle class in this emerging market gets more expensive tastes, this stock is cashing in
If you need proof of how hot Latin America is right now, just take a look at the recent list of Forbes billionaires -- Microsoft (MSFT) founder Bill Gates was bumped from his perch at #1 by Mexican telecom mogul and America Movil (AMX) owner Carlos Slim.
What’s more, Brazilian mining and oil tycoon Elke Batista (#8 on the list of richest men) has openly declared that his goal is to be the world’s richest man. Seems like he’s on his way, since he was this year's biggest gainer on the "Forbes" list with a $19.5 billion increase in his personal piggy bank.
These Latin American billionaires show the strength of the region. There are sure to be many more billionaires being made in this emerging market -- and plenty of profits for investors to share in. To help you get your share, here’s my top Latin American stock.
Bebidas das Americas (ABV) is
translated to “the American Beverage Company,” and commonly known simply as
AmBev. This company dominates the Brazilian beer market with brands such as Antarctica, Brahma and Skol.
Additionally, the company sells Pepsi brands, Lipton iced tea and other beverages that include mineral water and sports drinks. Along with Brazil, AmBev sells its products in some 13 other countries, including the South and Central American countries of Argentina, Peru, Ecuador, Uruguay and Venezuela.
- AmBev is one of Louis Navellier’s Top 5 stocks for March .. get the other four!
As consumers in Latin America become more affluent, they aren't just buying more cars and televisions. An emerging middle class is buying upscale consumer staples from AmBev and really pushing this stock to new heights. I expect the global recovery to continue to boost this stock.
AmBev reported quarterly results in November that saw net sales grow almost 20%. The company also saw 4.7% organic growth, driving the stock to its fourth consecutive earnings surprise. Though numbers slipped a bit in the company’s latest quarter, momentum is once again building behind this top Latin American stock and I expect it to perform very well when it reports first-quarter numbers on May 5.
If Wall Street price targets are any indication, most other investors are bullish on this stock, too. Of eight estimates for ABV shares, only one is below the current price level of $97, just a few dollars down at $95. The average target is $107 a share -- a 12% increase -- with the outlier on the top end an impressive forecast of $118 a share.
At the time of this writing, Louis Navellier owned shares of ABV in personal or client portfolios.
- 5 Small Cap Stocks Taking the World by Storm
- 10 Unsung Dividend Heroes With +10% Yields
- 7 InvestorPlace Experts Offer Top Stocks for March
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. 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 SIX Financial Information.
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.