(BBD) Banco Bradesco - Ratings and Ratios

Banco Bradesco S.A. ADR (NYSE:BBD) is one of Brazils largest financial institutions, offering a comprehensive suite of banking and insurance products. The bank operates through two primary segments: Banking and Insurance. Its banking division provides a wide range of services, including current, savings, and salary accounts, as well as various credit solutions such as real estate loans, vehicle financing, and personal credit. The insurance segment offers products like life, health, and auto insurance, along with pension plans and investment solutions. The bank also provides foreign exchange services, capitalization bonds, and internet banking. Established in 1943, Banco Bradesco is headquartered in Osasco, Brazil, and has a significant presence in both domestic and international markets.

From a financial standpoint, Banco Bradesco S.A. ADR is well-positioned in Brazils banking sector. The stock is listed on the NYSE under the ticker symbol BBD and is classified as a common stock. With a market capitalization of $21.71 billion USD, the bank is considered a large-cap company. Its price-to-earnings (P/E) ratio of 8.42 indicates a reasonable valuation relative to its earnings, while the forward P/E of 5.87 suggests potential undervaluation. The price-to-book (P/B) ratio of 0.81 reflects that the stock is trading below its book value, which may appeal to value investors. The banks return on equity (RoE) of 10.24% highlights its ability to generate profits from shareholders equity.

Technically, Banco Bradesco S.A. ADR has shown stability in recent trading sessions. The stocks average 20-day volume is 33,205,874 shares, indicating moderate liquidity. The last price of $2.23 is slightly above the 20-day simple moving average (SMA) of $2.20 but aligns closely with the 200-day SMA of $2.22. The 50-day SMA of $2.11 suggests a gradual upward trend. The average true range (ATR) of 0.08 points to low volatility, making the stock less risky for short-term traders.

3-Month Forecast: - Technical Outlook: - Price is expected to remain range-bound between $2.10 and $2.35, supported by the convergence of SMAs. - Low ATR suggests limited volatility, indicating a sideways or gradual uptrend. - Break above $2.35 could trigger a bullish breakout, while a drop below $2.10 may signal a bearish reversal. - Fundamental Outlook: - The stocks attractive P/E and forward P/E ratios suggest potential for upside as earnings growth materializes. - A P/B ratio below 1 signals undervaluation relative to book value, offering a margin of safety for investors. - Strong RoE and low P/S ratio of 0.28 indicate efficient operations and undervaluation relative to sales.