3 Low-Volatility BRIC Stocks With Impressive Profitability

Includes: ABEV, ELP, VIV
by: Kapitall

Interested in the potential growth opportunities that emerging markets offer, but worried about the risk? If so, here's a list of stocks from the BRIC countries you may be interested in.

We ran a screen on US-traded stocks of companies based in the BRIC countries (Brazil, Russia, India, and China) for those with low volatility, with average intra-day trading ranges under 3% this past month.

We then searched for those with impressive profitability, beating their industry peers on gross, operating, and pretax margins.

‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks offer less risky alternatives? Use this list as a starting point for your own analysis.

List sorted by avg. intra-day trading range.

1. Companhia de Bebidas Das Americas (AMBEV) (ABV): Engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt, and other non-alcoholic and non-carbonated products in the Americas. Brazil. Average intra-day trading range over the last month at 1.58%. TTM gross margin at 68.07% vs. industry average at 59.17%. TTM operating margin at 38.91% vs. industry average at 22.81%. TTM pretax margin at 39.81% vs. industry average at 24.02%.

2. Companhia Paranaense de Energia (NYSE:ELP): Engages in the generation, transmission, distribution, and sale of electricity for industrial, residential, commercial, and rural customers primarily in the State of Parana, Brazil. Brazil. Average intra-day trading range over the last month at 2.05%. TTM gross margin at 31.72% vs. industry average at 26.97%. TTM operating margin at 24.03% vs. industry average at 18.48%. TTM pretax margin at 21.59% vs. industry average at 14.21%.

3. Vivo Participacoes S.A. (NYSE:VIV): Brazil. Average intra-day trading range over the last month at 2.32%. TTM gross margin at 62.97% vs. industry average at 49.06%. TTM operating margin at 17.76% vs. industry average at 13.18%. TTM pretax margin at 18.82% vs. industry average at 10.17%.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.