10 Worst Affordable Stocks to Buy Under $10

3. Banco Bradesco SA (NASDAQ:BBD)

Price: $2.30

Forward P/E Ratio: 6.51

Earnings Growth This Year: 7.43%

Number of Hedge Fund Holders: 18

Banco Bradesco SA (NASDAQ:BBD) is one of Brazil’s largest and most diversified financial institutions, offering a wide range of banking and financial services both domestically and internationally. It is one of the worst affordable stocks to buy under $10.

In February, analysts from Goldman Sachs downgraded the stock from Buy to Sell, reducing the price target from $2.40 to $2. The firm noted that Banco Bradesco SA’s (NASDAQ:BBD) return on equity is expected to remain below its cost of equity until at least 2027. This indicates that Banco Bradesco is not generating sufficient profits relative to its equity costs, which is a critical metric for evaluating a company’s financial health. Moreover, the bank also lags behind its competitors, in terms of financial performance.

The analyst noted that Banco Bradesco SA’s (NASDAQ:BBD) profitability is “muted,” meaning it is not strong enough to support robust organic capital generation. This is particularly concerning after a year in which shareholders’ equity remained stable, indicating limited growth in shareholder value.