Congratulations to Rio de Janeiro for winning the 2016 Summer Olympics.
I’m especially excited for this bid because it will shift attention on Brazil and its economy. In fact, one of my favorite stocks in world right now is Ambev (ABV) which is based Sao Paulo.
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.
This company is a great buy for two reasons: First of all, beer and soft drinks are consumer staples that have seen strong sales even during tough times. And secondly, AmBev is benefiting from the fact that the Brazilian real has appreciated dramatically against the U.S. dollar since March. Since Brazil’s currency has surged over 20% compared to the greenback, Ambev’s sales and profits have been boosted significantly.
The numbers speak for themselves. In its latest quarter, Ambev posted 35% earnings growth and beat expectations by more than 30%. Wall Street has been revising its earnings estimates dramatically higher. Ambev is a very strong buy and I currently recommend the stock in my Quantum Growth service and my Blue Chip Growth service.