Itaú (ITUB4) Tops January 2026 Stock Picks: Here Are the 10 Most Recommended Stocks by 17 Institutions

• Why Itaú (ITUB4) Is the Market Darling for January 2026
• Vale (VALE3): Iron Ore’s $100+ Floor Keeps It in the Game
• Localiza (RENT3): The Rental Play for Brazil’s Rate-Cut Cycle
• Petrobras, Bradesco, and More: The 7-Time Contenders
• Dark Horses: Cyrela and Sabesp’s 6-Pack Appeal
• The Big Picture: Why Brazil Could Outperform in 2026
• Q&A: Your Burning Questions Answered

Itaú Unibanco (ITUB4) has emerged as the top stock pick for January 2026, appearing in 12 out of 17 institutional portfolios. The Brazilian banking giant dethroned Vale (VALE3), last month’s leader, as analysts highlight its resilient business model and strong technical outlook. Meanwhile, Vale remains a favorite due to bullish iron ore forecasts, while Localiza (RENT3) and Petrobras (PETR4) round out the top picks. Here’s a deep dive into the stocks dominating this month’s recommendations—and why they might deserve a spot in your portfolio.

Why Itaú (ITUB4) Is the Market Darling for January 2026

Itaú Unibanco isn’t just Brazil’s largest private bank—it’s also this month’s most recommended stock, with 12 endorsements from major institutions like Santander and Rico. Analysts praise its "fortress-like" balance sheet and digital transformation, which have kept it profitable even during economic turbulence. Trading at 1.95x book value, ITUB4 isn’t cheap, but as Empiricus Research notes, "you’re paying for consistency and superior ROE." The bank’s net interest income (NII) is projected to grow double-digits in 2026, fueled by stabilized credit portfolios and improved spreads. Santander’s team adds, "Itaú’s loan growth in niche segments could surprise to the upside once delinquency rates normalize."

Vale (VALE3): Iron Ore’s $100+ Floor Keeps It in the Game

With 10 recommendations, Vale secures second place as analysts bet on iron ore prices holding above $100/ton. Safra Bank trimmed its exposure but remains bullish, citing cost efficiencies and "shareholder-friendly moves like buybacks." Santander’s global commodities team argues that Simandou mine’s ramp-up will be offset by infrastructure spending in emerging markets. "China’s stimulus and India’s construction boom are tailwinds," says a BTCC market strategist. Vale’s ADRs also offer dollar-denominated exposure—a hedge for local investors wary of BRL volatility.

Localiza (RENT3): The Rental Play for Brazil’s Rate-Cut Cycle

Car-rental leader Localiza grabbed 8 nods, thanks to its "bulletproof balance sheet" (Rico’s words) and a technical breakout from its downtrend. As Brazil’s central bank slashes rates, cheaper financing could turbocharge its fleet expansion. "Their merger with Unidas created a cash-flow monster," notes an Itaú BBA report. The stock’s 15% short interest adds squeeze potential—just don’t expect dividend fireworks.

Petrobras, Bradesco, and More: The 7-Time Contenders

Four stocks tied with 7 recommendations each:

• Petrobras (PETR4): Still riding high on dividend hype, though political noise lingers.
• Bradesco (BBDC4): The turnaround bet—cheaper than Itaú but needs to prove its tech investments pay off.
• Prio (PRIO3): Oil explorer with low breakevens ($35/barrel) and juicy yields.
• Equatorial (EQLT3): The "Amazon-proof" utility stock, loved for its inflation-linked contracts.

Dark Horses: Cyrela and Sabesp’s 6-Pack Appeal

Homebuilder Cyrela (CYRE3) and water utility Sabesp (SBSP3) each scored 6 nods. Cyrela benefits from Brazil’s housing deficit and a potential real estate credit thaw. Sabesp, meanwhile, is a privatization play—its auction could unlock 30% upside, says BTG Pactual.

The Big Picture: Why Brazil Could Outperform in 2026

Empiricus flags a "perfect storm" for Brazilian assets: high real rates, falling inflation, and a weaker USD boosting EM flows. "The Selic cut cycle is just gravy," argues their chief strategist. TradingView charts show the Ibovespa breaking out of a 5-year range—a technical omen for bulls. Risks? Election drama and Petrobras’ dividend policy. But for now, institutions are loading up.

Full Rankings Table

Q&A: Your Burning Questions Answered

Why is Itaú preferred over Bradesco?

Itaú’s digital edge and lower NPLs (non-performing loans) make it the "safer" pick, though Bradesco’s discount tempts contrarians.

Is Vale’s iron ore price forecast realistic?

China’s property stimulus and global decarbonization (requiring high-grade ore) could sustain $100+/ton, but watch for inventory gluts.

How risky is Sabesp’s privatization bet?

Very. The auction timeline is fluid, and political meddling could dilute terms. Hedge with Equatorial for steadier returns.