7 Cheap Bank Stocks To Invest In Before They Take Off

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

Earnings Growth: 8.16%

Forward P/E Ratio: 6.64

Analyst Upside Potential: 113.27%

Banco Bradesco S.A. (NYSE:BBD) operates as a prominent Brazilian bank that provides a range of financial services. It operates as a full-service commercial bank, meaning it offers all services including checking and savings accounts, loans for individuals and businesses, and credit cards. The bank has been focused on improving its digital services during the fiscal third quarter of 2024, it closed down some of its physical branches to allocate more resources to its digital transformation venture.

On January 13, HSBC upgraded the stock from Neutral to a Buy rating, however, reduced the price target from $3.10 to $2.80. During the fiscal third quarter of 2024, Banco Bradesco S.A. (NYSE:BBD) generated R$30.6 billion in revenue, up 3.7% on a subsequent basis. Moreover, the bank also grew its total loan book, which reached R$944 billion after growing 3.5% quarter-over-quarter. Management has been focused on expanding its lending across various clients, for instance, its lending to individuals grew 10%, lending to SMEs grew 17%, and lending to large corporations witnessed a 0.7% growth. Banco Bradesco S.A. (NYSE:BBD) is the cheapest bank stock to invest in before it takes off.

While we acknowledge the potential of Banco Bradesco S.A. (NYSE:BBD) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BBD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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