Price Multiples For EWZ - I Think It Can, I Think It Can

Summary

Currently, I have a Hold recommendation for EWZ and BRZU.

Analysts have increased EPS growth expectations for IBrX 50.

The current P/E and P/S ratios are 19.4X and 1.5X, respectively.

Currently, I have a hold recommendation for the iShares MSCI Brazil Capped ETF (EWZ) and the Direxion Daily Brazil Bull 3x Shares ETF (BRZU). This recommendation is for investors using these ETFs as a tactical asset allocation (short-term investment of less than a year). I determined a hold recommendation based upon the data produced by my P/E ratio statistical model, which indicated that the downside risk is slightly more than the upside risk.

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