10 Best Bank Penny Stocks to Buy According to Hedge Funds

2. Banco Bradesco S.A. (NYSE:BBD)

Share Price as of the close of January 3: $1.85

Number of Hedge Fund Holders: 22

Banco Bradesco S.A. (NYSE:BBD) is a Sao Paulo-based company that provides banking products and services to individuals and corporations in Brazil and internationally. It operates through two segments – banking and insurance.

It is one of the largest financial services groups in Latin America, having been in the market for over 80 years. The bank has a nationwide presence across Brazil and also operates in seven other countries, which include the United States, Mexico, the Cayman Islands, Argentina, Hong Kong, Luxembourg, and the United Kingdom.

On October 31, the company posted robust results for the third quarter of fiscal 2024. Revenue was posted at BRL 30.6 billion, growing 3.7% quarter-over-quarter. Net income also increased 11% compared to Q2 to reach BRL 5.2 billion. BBD’s loan book also expanded by 3.5%, driven by a significant surge in loans to SMEs and individuals.

Banco Bradesco S.A. (NYSE:BBD) has also announced plans to launch Bradesco Principal. This will be a credit card targeting high net worth individuals, offering numerous benefits, including points that will not expire in the main lounges of airports, and offer a fast pass across airports in Brazil. The company is hopeful of onboarding between 45,000 to 50,000 new clients in this new segment by late January 2025.

Considering its nationwide presence in Brazil, and branches in key strategic locations internationally, Banco Bradesco S.A. (NYSE:BBD) has been streamlining its structure for quicker and improved decision-making, and enhanced client support. The company is also spending heavily on digital transformation which is likely to yield solid results moving forward.

Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 68%. According to Insider Monkey’s database for Q3 2024, 22 hedge funds held a stake in the company, making BBD one of the best bank penny stocks to buy according to hedge funds.