Investors looking for shares to buy have a few more options after a jaw-dropping market crash in Brazil sent related stocks tumbling. The iShares MSCI Brazil ETF nosedived 20% Monday (26 October)!
This came after the nation’s shock presidential election result, in which left-wing Luiz Inácio Lula da Silva beat right-wing Flavio Bolsonaro. As I write, the latter’s refusing to concede defeat, adding to the uncertainty.
For long-term investors seeking potential bargains, here are three options to consider, but not from Brazil’s crashing market. One is listed in New York and two on the London Stock Exchange.
FinTech faller
Nu Holdings (NYSE:NU), the company behind Latin America’s largest digital lender Nubank, crashed 17.5% yesterday. Before this, the growth stock was up 23% inside a month.
Brazil’s the neobank’s largest market by far (ahead of Mexico and Colombia). If economic conditions deteriorate there, the quality of the firm’s credit portfolio could follow. A weaker Brazilian currency can also reduce the value of its reported earnings when converted into US dollars.
What’s interesting though is that knowledgeable growth investors really like the stock. For example, Scottish Mortgage recently added to its position, flagging Nubank’s high growth and use of AI to create ‘a banker in your pocket’.
Wall Street analysts are also bullish. Both UBS and JP Morgan upped their price targets this month, to $20.50 and $23, respectively (the current price is $12.50).
The digital bank’s still in the early stages of deepening its relationships with 140m existing customers, while eyeing up a large Hispanic opportunity in the US. If Nu keep falling, I may buy more shares.
FTSE 100 faller
Next is Experian (LSE:EXPN). Prior to today, shares of the credit reporting giant were up 20% in a month, boosted by US regulators approving VantageScore 4.0 (a rival mortgage credit-scoring system to FICO), which is co-owned by Experian.
Yesterday however, the FTSE 100 stock dropped 6.7%. Latin America is Experian’s fastest-growing market, with 12% organic revenue growth in Q1 FY27. It contributed roughly 16% of group operating profit in FY26.
Key to this growth is Serasa Experian, Brazil’s leading consumer financial platform where millions of people check their credit scores and renegotiate debt. With many Brazilians struggling financially, Serasa’s debt settlement portal (Limpa Nome) remains very relevant. In Q1, management said it “performed very well, supported by higher volumes and expanded distribution through key partners”.
On the other hand, higher interest rates and economic strain may result in fewer credit cards and bank loans. Then there’s the associated currency volatility too.
On balance though, I think the stock’s worth considering buying. Experian has proprietary data on more than 1.5bn consumers and over 175m businesses. It’s using this data to enhance AI-driven decisioning in credit, fraud and identity.
The long-term growth opportunity in Latin America remains attractive, despite today’s volatility and potential US mortgage market weakness. The stock looks reasonably valued.
Diversified trust faller
Finally, Blackrock Latin American Investment Trust cratered 10.8% yesterday. The trust aims to deliver both long-term income and capital growth, with 63% of the portfolio in Latin America’s largest economy (explaining the crash).
However, the trust will undoubtedly have attractive buying opportunities opening up in Brazil. And over a third of assets are invested elsewhere, notably Mexico and Peru.
After the crash, the trust’s dividend yield has spiked to 5.6%.
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Ben McPoland owns shares of Nu Holdings and Scottish Mortgage.
