Best Stocks to Buy on the Brazil Stock Market Today (December 5, 2025)

Brazil’s stock market is closing 2025 near all‑time highs, but major banks and brokerages still see room for selective upside in 2026. The Ibovespa has recently broken through the 164,000‑point region, delivering gains of more than 36% this year, while J.P. Morgan’s base case now projects the index at 190,000 points in 2026 – about 18% above current levels. ^[1]

At the same time, Brazil remains one of the few large emerging markets trading at a discount to its own history and to peers. Genial Investimentos estimates the Ibovespa is at about 9.4x forward earnings, versus a long‑term average of 10.6x, with small caps at an even larger discount. ^[2]

Yet with more than half of Ibovespa constituents near 12‑month highs and foreign flows driving much of the rally, local strategists warn that stock picking matters more than ever going into December. ^[3]

Below, you’ll find a news‑driven, non‑personalised overview of the best Brazilian stocks to watch and potentially buy today, based on fresh reports and recommended portfolios published up to December 5, 2025 by major houses such as XP, BTG Pactual, Itaú BBA, Genial, UBS BB, Banco do Brasil, Ágora, Planner, and others.

Important: This article is informational only, not investment advice. Brazilian stocks are volatile and your decisions should consider your own risk profile, time horizon and local tax rules.

1. Market snapshot: why Brazil is still on global investors’ radar

1.1 Rally at the top, discount underneath

Recent research from Genial Investimentos highlights that: ^[4]

Ibovespa trades around 9.4x projected 12‑month earnings (historical average ~10.6x).
Ex‑Petrobras and Vale, the index still trades below normal (11.1x vs 12.0x average).
Small caps are the biggest outliers: roughly 10.1x P/E vs a historical 13.7x, suggesting room for re‑rating if rates fall.

That picture lines up with J.P. Morgan’s call that Brazil is one of the few EMs still “cheap” on price/earnings compared with peers, even after the 2025 rally. ^[5]

1.2 Rates, savings and the great rotation

The Selic is still high at 15% a year, but markets now price a meaningful easing cycle starting as early as Q1 2026, with JP Morgan expecting cuts of 3.5–4 percentage points and a year‑end rate near 11%. ^[6]
Meanwhile, Brazil’s savings accounts (“poupança”) have seen net withdrawals for five straight months, with R$ 2.86 billion pulled out in November and R$ 90.98 billion year‑to‑date – despite paying 0.5% a month plus TR. ^[7]

This mix – high current rates, expected cuts ahead, and money leaving ultra‑conservative savings – helps explain why local and foreign investors are crowding into B3.

1.3 But caution is rising

An extensive survey of broker “carteiras recomendadas” for December by Estadão E‑Investidor notes that with many stocks at or near record prices, strategists are shifting from broad beta to selective stock picking, favouring: ^[8]

Defensives with predictable cash flow (utilities, education, healthcare),
Quality banks and financials that benefit from falling rates,
Small caps with strong balance sheets and clear catalysts.

That’s the backdrop for the names below.

2. How this list was built (Dec 5, 2025)

To answer “best stocks to buy on the Brazil stock market today”, we cross‑checked only very recent material (late November and December 1–5, 2025), including:

InfoMoney’s ranking of the most recommended stocks for December (excluding Petrobras for the first time this year). ^[9]
E‑Investidor’s compilation of December model portfolios from Ágora, Andbank, Planner, Monte Bravo, BTG, Empiricus, Itaú BBA and Banco do Brasil. ^[10]
XP’s Top Ações portfolio for December. ^[11]
BTG Pactual’s list of the 10 best small caps to own into year‑end. ^[12]
UBS BB’s fresh report selecting Santander, Bradesco and XP as its preferred bank names as the rate‑cut cycle approaches. ^[13]
Itaú BBA’s list of five dividend plays with potential total returns up to 12.8%. ^[14]

From these, we’ve highlighted stocks that (a) appear across multiple houses, and/or (b) sit at the centre of important themes for 2026 (rates, commodities, domestic growth, dividends).

3. Core large‑cap ideas for exposure to Brazil

3.1 Vale (VALE3) – the consensus blue chip

Why it’s on the list: Vale is the single most recommended stock for December, appearing in six of the major broker portfolios compiled by InfoMoney. ^[15]
Thesis: Despite the global volatility in iron‑ore prices, brokers like Ágora continue to see “solid” operational performance, resilient commodity prices and a still‑attractive valuation, even after November’s 3.3% gain. ^[16]
Catalysts in 2026:
- Ongoing share buybacks and dividends backed by strong cash generation.
- Potential upside from any improvement in China’s steel demand.
- A cheaper multiple than many global mining peers, at a time when Brazil’s currency has strengthened, lowering local‑currency funding costs.

Key risk: Commodity demand (especially from China) and environmental/regulatory issues remain the big wildcards.

3.2 Itaú Unibanco (ITUB4) – quality bank at the core of almost every portfolio

Why it’s on the list: Itaú shows up repeatedly in December portfolios from Ágora, Andbank, Planner and Empiricus, and ranks as the second most recommended stock in InfoMoney’s December survey. ^[17]
Thesis: Terra Investimentos highlights robust recurring profit growth and a return on equity above 22%, which is high even by Brazilian standards, as reasons why ITUB4 is still seen as a defensive “core” holding with upside. ^[18]
Macro angle: In a scenario where Selic falls but stays in double digits for a while, quality incumbent banks like Itaú can benefit from:
- Better loan growth as households and companies refinance,
- Lower cost of capital,
- Potential re‑rating of financials as J.P. Morgan’s projected rate cuts kick in. ^[19]

Investors looking for a more dividend‑oriented, holding company play on the Itaú ecosystem also have Itaúsa (ITSA4), which E‑Investidor notes trades at a ~25% holding discount versus its underlying assets. ^[20]

3.3 Axia Energia (AXIA3, ex‑Eletrobras) – a post‑privatisation utility story

Why it’s on the list: AXIA3 (the renamed Eletrobras) appears in several December portfolios and is tied for third in InfoMoney’s ranking of most‑recommended stocks, with four separate broker buy calls. ^[21]
Thesis: Ágora calls Axia one of the most attractive medium‑ and long‑term stories in the power sector, citing:
- A global backdrop of rising energy prices,
- Asset sales (nuclear and thermal) that simplify the portfolio,
- Privatisation‑driven governance improvements and balance‑sheet restructuring,
- Potential to become a “strong dividend payer” as the new capital structure matures. ^[22]

Key risk: Regulatory and political noise around the energy sector and state‑linked companies is always a factor in Brazil.

3.4 Rede D’Or (RDOR3) – premium healthcare growth

Why it’s on the list: Rede D’Or is another name with four recommendations in InfoMoney’s December survey, and it features in several multi‑asset model portfolios as a high‑quality growth play. ^[23]
Thesis: RDOR3 currently trades around 17x earnings, and BTG Pactual argues that this could expand toward 20x, closer to other “quality compounders” in Brazil, if key catalysts play out:
- Normalisation of its hospital business after a post‑pandemic adjustment phase,
- Lower interest rates easing pressure on leverage,
- Better performance from its insurance arm. ^[24]

Key risk: Higher‑for‑longer rates, or regulatory shifts in healthcare, could hold back the expected multiple expansion.

3.5 Cyrela (CYRE3) – leveraged to the housing cycle

Why it’s on the list: Cyrela is tied with Axia and Rede D’Or as a top‑five most‑recommended stock for December, with four mentions in the InfoMoney compilation. ^[25]
Thesis: Santander and other houses see Cyrela as one of the best‑positioned developers for this housing cycle, thanks to: ^[26]
- A strong balance sheet,
- A diversified portfolio (middle‑ and high‑income, plus some affordable projects),
- Proven execution across cycles.

With markets pricing Selic cuts in 2026, quality developers tend to be among the first beneficiaries, even if near‑term volumes are still adjusting. ^[27]

Key risk: A slower‑than‑expected easing cycle or weaker employment could delay the recovery in pre‑sales.

4. Dividend and defensive plays for a more cautious stance

4.1 Copel (CPLE3 / CPLE5 / CPLE6) – utilities, governance and income

Why it’s on the list: Copel appears across multiple December portfolios (Andbank, Planner, BTG and others) and is one of Itaú BBA’s top dividend picks, with double‑digit total return potential cited for the next 12 months. ^[28]
Thesis: E‑Investidor points out that brokers like Copel for: ^[29]
- Efficiency gains across its segments,
- Governance improvements post‑privatisation,
- A solid pipeline of projects and a history of shareholder‑friendly capital allocation.

For investors seeking defensive cash flow in a still‑uncertain macro environment, Copel is one of the few utilities that screen well on both governance and dividends.

4.2 Sabesp (SBSP3) – structural re‑rating from privatisation

Why it’s on the list: Sabesp appears in several broker portfolios (Ágora, Planner, Monte Bravo) and is highlighted in E‑Investidor’s December survey as a key defensive/utilities bet. ^[30]
Thesis:
- The ongoing privatisation process is pushing a gradual re‑rating as investors price in improved efficiency and governance,
- Structurally long‑duration cash flows in water and sanitation,
- Potential for tariff and capex discipline over the medium term.

Key risk: Political and regulatory headlines around the privatisation and tariff setting can create bouts of volatility.

4.3 Allos (ALOS3) – mall operator with a dividend angle

Why it’s on the list: Allos is a new inclusion in Ágora’s December portfolio and also appears in Empiricus strategies, while Itaú BBA cites it among the dividend names with upside as the new tax rules on dividends from 2026 approach. ^[31]
Thesis:
- A high‑quality portfolio of shopping centres concentrated in prime regions,
- Operating leverage to a gradual recovery in real wages and consumption,
- The potential for attractive dividend distribution in the next cycles, especially if capex normalises after a period of consolidation and repositioning.

Allos fits the theme of “income plus modest growth” in a Brazil that is still digesting high rates but already looking ahead to easing.

4.4 Aura Minerals (AURA33) – diversified miner with yield

Why it’s on the list: Aura appears simultaneously in Itaú BBA’s dividend portfolio, BTG Pactual’s small‑caps list and XP’s December Top Ações, giving it a rare three‑way consensus status. ^[32]
Thesis:
- Exposure to gold and copper, which can hedge macro risk and inflation,
- A track record of distributing cash to shareholders,
- Multiple expansion potential if execution at key mines and new projects continues to improve.

Key risk: Commodity price swings and operational issues at specific mines can quickly impact earnings.

5. Financial stocks set to benefit from falling rates

5.1 Bradesco (BBDC4), Santander Brasil (SANB11) & XP (XPBR31) – UBS BB’s top bank picks

A fresh report from UBS BB, published today (Dec 5), singles out Santander Brasil, Bradesco and XP as its preferred plays in the banking space as Brazil heads into a rate‑cutting cycle. ^[33]

The logic:

Lower rates tend to be slightly positive for traditional banks’ margins in the short term because much of their funding is post‑fixed while a large part of their loan book is pre‑fixed. ^[34]
Rate cuts should support loan growth and asset quality, helping the cost of risk.
Lower yields on conservative products can push more money into platforms such as XP and BTG, boosting brokerage, asset management and wealth revenues. ^[35]

UBS BB’s upside estimates (in local currency) are notable:

Bradesco (BBDC4): “Buy” with price target implying almost 30% upside.
Santander Brasil (SANB11): “Buy” with upside close to 24%.
XP (XPBR31/XP US): “Buy” with nearly 16% potential appreciation. ^[36]

Risks: A slower or interrupted easing cycle, rising credit losses, or stronger regulatory pressure on spreads could limit the re‑rating.

5.2 Banco do Brasil (BBAS3) & Itaúsa (ITSA4) – value within the financial complex

E‑Investidor’s December round‑up underscores that Banco do Brasil is again showing up in several broker portfolios (Andbank, Planner, others) even after a tougher year for credit quality. The key argument: BBAS3 still trades on very low multiples (roughly 6.8x P/E and 0.7x P/B, according to Planner), cheaper than private peers. ^[37]

Meanwhile, Itaúsa (ITSA4) is widely cited as a way to get Itaú exposure plus a higher dividend yield, trading at a meaningful discount to the value of the assets it owns. ^[38]

These names fit the “value plus income” corner of the financial sector, complementing the higher‑beta plays like Santander and XP.

5.3 Nubank (ROXO34) & Inter (INBR32) – fintechs with high rate sensitivity

Both Nubank and Inter appear across recommended lists:

Nubank (ROXO34) is in BTG Pactual and Empiricus portfolios and enters Itaú BBA’s December picks, reflecting confidence in its growth and profitability trajectory. ^[39]
Inter’s BDR (INBR32) shows up in BTG Pactual’s small‑caps basket and is singled out by UBS as one of the names that could gain the most in valuation from a lower cost of equity. ^[40]

UBS estimates fintechs like XP, Inter and Nubank could see valuation uplift of 17–20% for a 1‑percentage‑point drop in their assumed cost of equity, more than traditional banks. ^[41]

6. Domestic growth and small‑cap opportunities

6.1 Localiza (RENT3) – mobility and tourism play

Why it’s on the list: Localiza is a mainstay in BTG’s December portfolio and was just added to XP’s Top Ações list, replacing more defensive names as strategists tilt toward cyclical plays. ^[42]
Thesis:
- Market leader in car rental and fleet management in Brazil and LatAm,
- Beneficiary of improved tourism, business travel and gig‑economy demand,
- Leverage to cheaper funding costs as rates fall, given its capital‑intensive model.

Risk: Highly sensitive to credit conditions and used‑car prices.

6.2 Housing small/mid caps: Direcional (DIRR3) & Tenda (TEND3)

Itaú BBA’s dividend report and several broker portfolios point to Direcional and Tenda as attractive plays on lower rates and housing stimulus, with total return potential cited as high as 12.8% for the group of dividend picks that also includes Copel and Allos. ^[43]

BTG’s small‑caps report likewise includes Tenda (TEND3) and other housing‑related names, arguing that the combination of: ^[44]

falling long rates,
government housing programs, and
leaner balance sheets

could drive outsized earnings recovery versus the broader market.

These stocks are higher risk than Cyrela or the large‑cap banks but offer more torque to the local macro cycle.

6.3 BTG Pactual’s small‑cap basket – higher risk, higher potential

BTG Pactual’s “10 best small caps” list for the end of 2025 includes names such as: ^[45]

Inter (INBR32) – digital bank with strong cross‑sell potential,
Aura Minerals (AURA33) – already discussed above,
Copasa (CSMG3) – regional water utility with improving efficiency,
Vivara (VIVA3) – jewellery retailer leveraged to the recovery in consumption,
3tentos (TTEN3) – agribusiness input player tied to a still‑resilient farm sector,
Track&Field (TFCO4) – fitness/lifestyle retailer benefiting from premiumisation and health trends,
Unifique (FIQE3) – regional telecom/internet provider.

BTG highlights what Genial’s macro team also stresses: small caps have already outperformed the Ibovespa in 2025, but still trade at a significant valuation discount to their long‑term averages, so they could continue to re‑rate if the rate‑cut cycle unfolds as expected. ^[46]

7. How to think about timing and risk today (Dec 5, 2025)

Putting it all together:

Macro setup:
- Ibovespa near record highs (~164k points) after a 36%+ rally this year,
- J.P. Morgan base case at 190k in 2026 with a potential bull case at 230k if the 2026 election leads to a more market‑friendly policy mix,
- Selic still at 15%, but with markets and JP Morgan expecting one of the largest global easing cycles next year. ^[47]
Valuation:
- Brazil as a whole remains discounted vs. history and peers, especially in commodities and small caps. ^[48]
Flows:
- Foreign ownership of local equities has climbed (Genial cites ~58% of free float held by foreigners), while savings accounts keep seeing net withdrawals, suggesting some capital is being reallocated toward higher‑risk assets. ^[49]
Positioning advice from the houses:
- For investors already in the market, many strategists recommend holding or trimming winners, rather than chasing everything indiscriminately. ^[50]
- For new capital, the focus is on quality large caps (Vale, Itaú, Axia, Rede D’Or, Cyrela) plus selective exposure to banks, utilities and small caps with clear catalysts and solid balance sheets. ^[51]

8. Practical next steps (non‑personalised)

If you’re considering Brazilian stocks today:

Define your role for Brazil in your portfolio
- Core exposure: consider diversified blue chips like VALE3, ITUB4, AXIA3, RDOR3, CYRE3.
- Income tilt: look at CPLE3/5/6, SBSP3, ALOS3, AURA33, ITSA4, BBAS3.
- Higher‑beta growth: BBDC4, SANB11, XPBR31, ROXO34, RENT3, DIRR3, TEND3, select small caps.
Match risk to horizon
- Small caps and housing developers can move violently around macro and political headlines; they usually require a multi‑year horizon and tolerance for drawdowns.
Watch 2026 election and rate‑cut timing
- Both J.P. Morgan and domestic houses agree that election results and the pace of rate cuts will be decisive for whether the Ibovespa justifies its current optimism. ^[52]
Use local research
- Many of the reports cited (XP, BTG, Itaú BBA, Banco do Brasil, Genial, Ágora, etc.) are updated monthly. Checking their latest “carteira recomendada” and full reports is essential before making any actual buy decision. ^[53]

Bottom line:

As of December 5, 2025, Brazil’s stock market is expensive in spots but not yet “full” across the board. The consensus from major local and global players is that there is still upside – especially in high‑quality banks, selected utilities, healthcare, housing and small caps – provided you are selective, patient and comfortable with Brazil‑specific political and macro risk.