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Brazil brokerage picks retail, beverage stocks as World Cup market favorites

Created at 3 Jun · 12:23 PM2 sources↑ Market-relevant2 events
IN SHORT

Brazilian brokerage XP sees retail and beverage stocks as market favorites during the World Cup, based on a probabilistic model. XP expects the tournament to boost tourism, transport, consumption, and streaming globally, with specific opportunities in Brazil's retail and beverage sectors.

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Key Numbers

9%France's chance of winning World Cup per XP model
6.4%Spain's chance of winning World Cup per XP model
6.1%Argentina's chance of winning World Cup per XP model
6%Brazil's chance of winning World Cup per XP model
26%Spain's chance of winning World Cup per Goldman Sachs model
50%Potential sales jump for MBRF due to World Cup gatherings

Who's Involved

XP
Brazilian brokerage that combined a probabilistic model with an investor playbook for the World Cup
France
Ranked as having the highest chance of winning the World Cup by XP's model
Spain
Ranked as having the highest chance of winning the World Cup by Goldman Sachs' model
Goldman Sachs
Rival firm with a different probabilistic model for the World Cup
Grupo SBF
Distributor of Nike in Brazil, seen as a direct bet on World Cup fever
Ambev
Brewer highlighted by analysts for opportunities in food and drinks
MBRF
Food processor expecting significant sales increase due to World Cup
Manoel Martins
Marketing vice president at MBRF

↳ Why This Matters

The World Cup is expected to drive consumer spending and create market opportunities, particularly in the retail and beverage sectors, as companies prepare for increased demand during the event.

Key facts

  • Brazilian brokerage XP identified retail and beverage stocks as market favorites for the World Cup.
  • XP's model gave France a 9% chance of winning the World Cup, followed by Spain, Argentina, and Brazil.
  • Goldman Sachs' rival model placed Spain as the favorite with a 26% probability.
  • XP expects the tournament to create tailwinds for tourism, transport, themed consumption, and streaming globally.
  • In Brazil, XP sees opportunities in apparel, electronics, and food retail, as well as beverages.
  • Food processor MBRF anticipates a sales jump of up to 50% due to World Cup gatherings.

Brazilian brokerage XP has identified retail and beverage stocks as potential market favorites during the upcoming World Cup. The brokerage combined a probabilistic model of the competition with an investor playbook, suggesting that both soccer giants and consumer names could perform well. XP's simulation-based model gave France the highest chance of winning the trophy at 9%, followed by Spain, Argentina, and Brazil. However, a rival model from Goldman Sachs placed Spain as the favorite with a 26% probability. XP anticipates that the 48-team tournament, held in the United States, Canada, and Mexico, will generate positive impacts on global tourism, transport, themed consumption, and streaming services. Within Brazil, specific opportunities are seen in apparel, electronics, and food retail, as well as beverages. Grupo SBF, the distributor of Nike in Brazil, is considered a direct play on World Cup enthusiasm, while brewer Ambev is noted for its potential in the food and drinks sector. Food processor MBRF expects sales related to World Cup gatherings to increase by as much as 50% compared to the previous tournament, aided by promotions and a favorable match schedule.

Frequently asked questions

XP sees retail and beverage stocks as favorites. In Brazil, specific opportunities are identified in apparel, electronics, and food retail, alongside beverages.

XP's model gave France a 9% chance of winning, followed by Spain (6.4%), Argentina (6.1%), and Brazil (6%).

MBRF anticipates sales tied to World Cup gatherings could jump by as much as 50% compared to the previous tournament, due to promotions and a favorable match schedule.

What Happens Next

01Monitor consumer spending trends during the World Cup.
02Observe performance of retail and beverage stocks in Brazil and globally.
03Track further analysis from brokerages on event-driven market opportunities.

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How It Developed

3 Jun · 4:40 PM
A Brazilian brokerage identifies retail and beverage stocks as potential winners of the World Cup, alongside soccer favorites France.
Reuters via PiQSuite
3 Jun · 12:00 PM
Stanley Druckenmiller and Wall Street banks are increasing their investment in Argentine stocks, reversing a trend of exiting ahead of the 2025 midterm elections.
Financial Post via PiQSuite

Sources

T1
Druckenmiller Leads Wall Street's Return to Argentine Stocksm.piqsuite.com
T1
Soccer-France, retail, beverage stocks: Brazil brokerage picks World Cup favouritesm.piqsuite.com

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