Brazil is the largest stock market in Latin America, and this autumn it has been anything but quiet. Investors spent weeks betting on a change of government and tighter public finances, and Brazilian shares rose accordingly. Then Lula won the presidential runoff on 25 October, and many of those bets were reversed within days.
The Ibovespa fell almost 14% on the day after the vote, and that week was its worst since March 2020. The index had risen strongly before the election, so it still stands slightly above its level at the start of the year. Since then, investors have been looking for signs of fiscal discipline. The central bank left its policy rate unchanged on 4 November after five cuts this year, and the market regained part of the loss when Lula reaffirmed his fiscal commitments in a national address. Oil is a second influence: prices fell on signs of progress in US-Iran talks, which weighed on Petrobras. The third-quarter reporting season is also coming to an end, and several companies in this post have published their results.
A shock like this makes it hard to see which companies are strong and which only moved with the market. Obermatt ranks compare each company with its industry peers, so they show relative strength rather than the direction of the market.
What Foreign Investors Need
We covered how foreign investors reach Brazil in the Latin America post of our Investing Beyond Your Home Market series. Since December 2025, Interactive Brokers has offered Brazil's B3 exchange to eligible clients outside Brazil, and since January 2026 Brazil withholds 10% on dividends paid to non-residents. Many Brazilian companies pay part of their return as interest on equity instead, which is taxed at 17.5% for foreign holders. Telefonica Brasil and Raia Drogasil both announced such payments recently. The Latin America post explains these points in more detail.
Here is the Brazil Top 10 by 360° View, which compares each company with its peers on a scale from 0 to 100:
Name | 360° View | Sentiment | Combined | Value | Growth | Safety |
|---|---|---|---|---|---|---|
1. XX-Large • Oil & Gas Integrated | 100 | 66 | 100 | 92 | 97 | 44 |
2. X-Large • Electric Utilities | 98 | 60 | 100 | 93 | 91 | 88 |
3. X-Large • Automotive Retail | 98 | 98 | 98 | 90 | 87 | 61 |
4. X-Large • Integrated Telecommunication Services | 98 | 73 | 98 | 78 | 79 | 63 |
5. X-Large • Paper Products | 96 | 100 | 55 | 68 | 88 | 13 |
6. X-Large • Steel | 94 | 90 | 87 | 88 | 46 | 77 |
7. Large • Apparel Retail | 92 | 61 | 94 | 94 | 51 | 84 |
8. X-Large • Steel | 91 | 52 | 94 | 76 | 86 | 83 |
9. Large • Agricultural Products | 89 | 89 | 67 | 59 | 91 | 25 |
10. X-Large • Aerospace & Defense | 87 | 100 | 49 | 58 | 97 | 4 |
Strong Scores, Different Profiles
All ten companies score at least 87 on the 360° View, yet the profiles differ. Petrobras leads with 100 and also reaches 100 on the Combined Rank, with a Value Rank of 92 and a Growth Rank of 97. Its Safety Rank of 44, which looks at debt, liquidity and refinancing, and its Sentiment Rank of 66 are the weaker side, and investors continue to weigh the oil price, diesel pricing policy and political exposure.
Eletrobras, which now operates under the name Axia Energia, has the most even profile: Safety Rank 88, Value Rank 93 and Growth Rank 91. Sentiment is its lowest rank at 60, as investors react to a drop in quarterly profit. The Federal Court of Accounts has dismissed a legal challenge to its purchase of power plants from Âmbar.
Telefónica is one of Spain's best-known companies, so its Brazilian arm, Telefonica Brasil, was the name that caught my eye. A Value Rank of 78, a Growth Rank of 79 and a Safety Rank of 63 are all solid, and the company has approved another payout to shareholders. Vibra Energia, the fuel distributor, is the only name in the top three with a Sentiment Rank near the top at 98.
Suzano and Embraer show the other side. Both have a Sentiment Rank of 100 and strong growth, but Safety Ranks of 13 and 4 point to weak debt, liquidity or refinancing compared with peers, and their Combined Ranks of 55 and 49 are the lowest in the list. Suzano has raised its pulp prices. Embraer reported record quarterly revenue and a record order backlog and raised its 2026 guidance, while net profit fell on higher financial expenses.
Gerdau and its holding company Metalurgica Gerdau both made the list. Gerdau had a strong quarter, driven by its North American operations, and has a Safety Rank of 77. The holding company has the weakest Sentiment Rank of the list at 52. Lojas Renner pairs a Value Rank of 94 and a Safety Rank of 84 with a modest Growth Rank of 51. It reported lower quarterly profit and changed its guidance, which fits a consumer company in an economy with interest rates this high. SLC Agricola, the agricultural producer, has a Growth Rank of 91 and a Safety Rank of only 25, and the competition authority has cleared its latest acquisition in Mato Grosso.
Where Sentiment Diverges
The Sentiment Top 10 shows which companies professional investors currently favour. It shares four names with the 360° View list: Embraer, Suzano, Vibra Energia and Gerdau. The other six bring different profiles. YDUQS, the education group, reaches 98 on Sentiment and 96 on Value, but its Growth Rank is 43 and its Safety Rank only 26. Investors are following the structure and regulatory approval of a possible merger. Weg, the electrical equipment maker, also has a Sentiment Rank of 98, yet a Value Rank of 26 shows that the market already pays a high price for its quality. It has returned to revenue growth and is expanding in North America through an acquisition.
Eneva and Rede D'Or São Luiz both reach 96 on Sentiment but have low Combined Ranks of 4 and 18. Eneva, a power producer, is expanding its gas exploration and thermal capacity. Rede D'Or, the hospital operator, has a Safety Rank of only 4. Raia Drogasil, the pharmacy chain, and Rumo, the rail operator, complete the list at 91 and 90, each with a Combined Rank of 30 or lower. High Sentiment is not a warning sign in itself, as it can also be an early sign of improving fundamentals, but six of these ten names have a Safety Rank below 30, which is a reason to read both lists together.
More Ways to Rank Brazil
The Obermatt app offers a Top 10 list for Brazil for each of the ranks above and for Dividend Yield. Investors who focus on valuation can start with the Value Top 10, those who prioritise stability with the Safety Top 10, and those who look for income with the Dividend Yield list.
All of these lists are available to Obermatt subscribers in the app. Explore the plans and start your free trial