5 Brazil Growth Stocks To Consider

Investors looking for attractive international growth opportunities should look to Brazil. Brazil doesn’t have Europe’s debt woes or China’s bubble worries. In fact, Brazil’s economy grew an impressive 9% in the first quarter – the highest rate of any country.

Brazil is transitioning from a country that was once separated by radical class divisions into a burgeoning middle-class nation. The middle class now makes up 49% of the population in Brazil and that number continues to grow.

On yesterday’s Mad Money show, host Jim Cramer identified 5 Brazil stocks for international growth investors. These companies are each uniquely positioned to capitalize on the growth in Brazil’s middle class incomes.

Itau Unibanco Holding (ITUB: 21.54 +1.94%)

Cramer believes that ITUM is a premier Brazilian bank that is trading at an attractive valuation.

Banco Bradesco (BBD: 18.52 -0.32%)

This bank doesn’t get enough credit for its insurance business or its IT investments.

CPL Energia (CPL: 30.76 -1.03%)

CPL is an attractive dividend stock with a 7% yield and great exposure to the growing utilities industry.

Gafisa (GFA: 6.02 -1.47%)

Cramer calls GFA, “the cheapest homebuilder in the world, and the worst-performing stock.” Gafisa has fallen 25% from last year. However, as more middle class Brazilians buy homes, Gafisa stock will soar higher.

Ambev (ABV: 36.98 -0.88%)

ABV is the sole bottler of Pepsi (PEP: 66.765 +0.01%) in Brazil and of beer brands that together have a hold on 70% of the Brazilian market. This stock also has a decent 3.6% dividend yield.

Cramer also likes Vale (VALE: 26.36 -0.57%) and Petroleo Brasileiro (PBR: 32.06 +0.12%) as terrific plays on Brazil.