Argentina Bank Banco Itau Stock Growth Pick
Written By TarikThe US economy is heading into recession and plans to land softly as the once booming housing markets cools. Take this cooling US economy as an reason to increase your international stock position. When browsing foreign equities, safety is our number one goal. Instead of investing in an obscure foreign equity security that carries little weight, invest your dollars in the country itself or at least the next best thing: banking.
The best feature about banks is that they grow along with their direct economy. As the wealth of the nation grows, so does its prospective banks and financial institutions. Look where the US stock market and Bank of America were back in the ’20s. Bank of America directly benefited from the US economy’s growth and wealth. The same effect occurs among foreign institutions as well.
Brazil’s Banco Itau (ITU)
Banco Itau (Symbol: ITU) is a great play on the exploding growth of Brazil’s economy. ITU bank has achieved 22% five year sales growth along with %27 five year earnings growth. Its bolstering growth is compounded with gorgeous ratios:
- 40% ROE
- 3.14 Price to Sales Ratio
- .94 PEG Ratio
Let’s not forget to mention Bank of America (symbol: BAC) recently increased its stake in ITU from 7% to 11%. When large banks invest in the smaller guys, it’s a plus for potential investors. Do some more research on Banco Itau because it’s a straight up, no strings attached play on Brazil’s evolving economy.
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