Is Banco Bradesco S.A. (NYSE:BBD) a Great Value Stock Right Now?

On 01-28-2k21 (Thursday) Shareholders tracking shares of Banco Bradesco S.A. (BBD) belongs to Financial sector and Banks – Regional industry. BBD flaunted 0.44% to reach at $4.59 during previous trading session. BBD Inc. has a total market value of 25.34B at the time of writing – representing $5.52B outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at 2.76%.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system’s “Value” category. Stocks with both “A” grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Banco Bradesco (BBD). BBD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.02 right now. For comparison, its industry sports an average P/E of 11.41. BBD’s Forward P/E has been as high as 11.06 and as low as 4.69, with a median of 9.01, all within the past year.

Investors will also notice that BBD has a PEG ratio of 1.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company’s expected earnings growth rate. BBD’s industry has an average PEG of 2.09 right now. BBD’s PEG has been as high as 6.77 and as low as 0.53, with a median of 2.52, all within the past year.

Finally, investors will want to recognize that BBD has a P/CF ratio of 10.17. This data point considers a firm’s operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BBD’s P/CF compares to its industry’s average P/CF of 13.73. Over the past 52 weeks, BBD’s P/CF has been as high as 10.88 and as low as 3.75, with a median of 6.75.

These are only a few of the key metrics included in Banco Bradesco’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BBD looks like an impressive value stock at the moment.

Volume Evaluation

The Brazil listed company saw a recent price trade of $4.59 and 28,266,040 shares have traded hands in the session. There are 27.02M shares which are traded as an average over the last three months period.

Many investors forget that one of the defining characteristics of the stock market is that it’s a market. Buyers and sellers help determine the price of each stock, and the more buyers and sellers a particular stock has interested in it, the more liquid the market will be. Liquidity can have a profound impact on just how violently stock prices can move in either direction, and the reasons have to do with the nature of the market in a stock’s shares.

Trading volume, or volume, is the number of shares or contracts that indicates the overall activity of a security or market for a given period. Trading volume is an important technical indicator an investor uses to confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether they should buy or sell the security.

Performance Levels

Looking performance record on shares of Banco Bradesco S.A. (BBD) we observed that the stock has seen a move -34.85% over the last 52-week trading period. The stock generated performance of 15.67% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed -12.67%. Shares are at -6.90% over the previous week and -12.64% over the past month.

Analyst Views:

Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $6.33. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 1.90on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.

Volatility Insights

Watching some historical volatility numbers on shares of Banco Bradesco S.A. (BBD) we can see that the 30 days volatility is presently 3.45%. The 7 days volatility is 3.52%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The company has a beta of 0. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.

The Average True Range (ATR) value reported at 0.19. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.

Technical Considerations

Banco Bradesco S.A. (BBD) stock positioned 13.55% distance from the 200-day MA and stock price situated -6.93% away from the 50-day MA while located -8.42% off of the 20-day MA.

RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

Observing the Technical Indicators:

Banco Bradesco S.A. institutional ownership is held at 17.55% while insider ownership was 0. As of now, BBD has a P/S, P/E and P/B values of 0, 6.56 and 1.01 respectively. Its P/Cash is valued at 0. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin 0.

Profitability ratios:

Looking into the profitability ratios of BBD stock, an investor will find its ROE, ROA, ROI standing at 0, 0 and 0, respectively.

Earnings per Share Details of Banco Bradesco S.A.:

The EPS of BBD is strolling at 0.70, measuring its EPS growth this year at -48.60%. As a result, the company has an EPS growth of 1.60% for the approaching year.

Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.

The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was 0 and Price to free cash flow remained $0.

About Jessica Wilson

I am Jessica Wilson Senior News Writer for alphafinews.com. I covers Financial sector and writes about hot Financial companies from an exclusive and “out of the box” perspective. Over the 7 years, I have built a network of resources within the financial sector I writes about. I hold MS degree in the field of Finance. My most recent work incorporates a promoting article on the portable site plan that objectives organizations hoping to make their sites amicable to versatile clients. The greater part of my articles mixes some type of examination with the composition process itself. I work on a full-time basis for Alpha Finews Update specializing in quicker moving active shares with a short-term view on investment opportunities and trends. I have been active in the markets for some years, and I mainly focused on long/short equities. Exceptionally qualified Senior Business Writer with over seven years of showed involvement in marketable strategies and awards.

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