Aracruz Celulose S. A. (ADR) (NYSE: ARA) is a Latin stock that trades in the U.S. market. Based in Brazil, ARA produces bleached hardwood market pulp from eucalyptus pulp. The pulp is used by paper manufacturers to produce everything from tissues to writing papers to liquid packaging boards to specialty papers. Because the growing conditions are so favorable for eucalyptus in Brazil, Aracruz is able more easily and quickly grow the tree, and produce the pulp at a much lower cost than its competitors.

I have been asked numerous times for a recommendation for a Latin stock, and that is why I am writing on ARA. Aracruz Celulose is one of the biggest players in the paper pulp market. Good news for them comes from China, where demand for paper is growing at a fast clip.

China doesn't have sufficient forests to meet the demand for pulp, and its market helps Aracruz dominate the industry. Of the world's eucalyptus pulp supply, 31% of it comes from Aracruz. This company continues to grow at an excellent clip. It is in good financial health. However, as with many international companies, keep an eye on what is going on in Brazil. It has a wild economy, and governmental meddling with regulations, new taxes etc is not infrequent, often to the detriment of investors.

Type of stock: A large cap Latin American stock in the competitive paper industry, but one that has a leg up due to economies of scale and lower cost of eucalyptus.

Price target: Currently trading at $53.37, this stock has room for upside. If it dips to $50, I'd pick it up. It's averaged 27% revenue growth in the last three years, and I don't think this rate will slow soon. But remember the geopolitical risks that come with investing in a Brazilian company.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.