Stock market in election year: 5 shares that could do well in 2022, according to experts

After the initial phase of the coronavirus pandemic, which brought down markets around the world, those who chose to invest in the Brazilian stock exchange had to face an extra dose of volatility and uncertainties linked to the political scene and the fiscal crisis in the country.

For 2022, the unstable scenario should not let up, especially given the fact that it will be a year with presidential elections. This does not mean, however, that there are no opportunities on investors’ radar.

To identify good paths for those who intend to bet on shares, the CNN Brasil Business gathered some options in this path preferred by market managers that may go well this year.

According to XP Investimentos, there are three common characteristics of companies that should stand out in the year.

They are, by and large, companies linked to commodities, seen as a good protection against inflation and the rise of the dollar; or with histories of secular growth, shielded against the more challenging macroeconomic scenario.

Specialists also cite companies that had a recent drop in their shares, not justified by any specific characteristic of their business or sector. That is, with an unjustified depreciation of assets, which may indicate that they are below the fair price.

PetroRio (PRIO3)

For Sidney Lima, an analyst at Top Gain, the shares of PetroRio (PRIO3) may have a good performance during the year, given that the company is related to oil and this commodity could end up benefiting from the economic recovery “post-pandemic”.

“Another fact that catches my attention is that the company adopts a more aggressive business style, especially in terms of acquisition, which tends to benefit its financial result, due to the growing production increase, and as a consequence the increase in the company’s revenue, which even has an interesting proportion of dollarized revenue”, he said.

Lima also emphasizes that PetroRio should not suffer from any political interference next year. “And for 2022, it is worth remembering that it will be an election year, and Petrobras, despite being an excellent company, is navigating in a terrain of uncertainty, through its political influence,” he said.

PETROBRAS (PETR3 and PETR4)

For Rodrigo Glatt, a partner at the GTI management company, Petrobras, which is also linked to oil, should stand out in the year, as it should obtain good results and, at the same time, pay excellent dividends to shareholders, above the basic interest rate (Selic ).

“It would highlight Petrobras in a scenario of very strong cash generation and potentially paying dividends above 20% in the coming years”, said Glatt.

Banco do Brasil (BBAS3) and Itaú Unibanco (ITUB3 and ITUB4)

For Ricardo Oliboni, a partner at Axia Investing, for those who have a long-term focus, the shares of banks such as Banco do Brasil and Itaú Unibanco may offer excellent buying opportunities during the year.

For XP Investimentos, BB is even the main choice in a sector that will see a more challenging year in 2022, with possible regulatory interventions and more aggressive competition, given the advance of Open Finance and fintechs.

“What can impact the credit market and gain strength in the investment, insurance, pension, exchange and salary accounts fronts,” said XP, in a note.

BrasilAgro (AGRO3)

XP also highlights BrasilAgro for 2022. The company is one of the largest Brazilian companies in terms of arable land and is focused on the acquisition, development, exploration and sale of rural properties with agricultural capacity.

According to the financial market company, in the grain market, the outlook is for a strong soybean and corn crop for Brazil.

“Considering factors such as the greater operational heterogeneity of each company and improved productivity, we can see mixed results. The US crop and Chinese appetite should bring volatility in the medium term”, informed XP, in a note.