7 Most Undervalued Financial Stocks To Buy According To Analysts

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

Analyst Upside: 129.59%

Forward P/E: 5.65

Banco Bradesco S.A. (NYSE:BBD) is a Brazilian banking company that offers a range of financial services, including loans, insurance, and asset management. One of the oldest and largest banks in Brazil, Banco Bradesco is investing significantly in digital banking networks and expanding its insurance and wealth management segments.

The company has announced plans to launch Bradesco Principal, a subsidiary that will make credit cards targeting high-net-worth individuals. The company expects to onboard between 45,000 to 50,000 new clients in this new segment in early 2025.

Banco Bradesco S.A. (NYSE:BBD) continues its growth trajectory driven by increasing client base, improved profitability, and strategic policies. During the third quarter of 2024, the company’s net income soared 11% year-over-year to $868.01 million. The bank’s loan portfolio recorded 3.5% quarter-on-quarter growth, with a notable increase of 17% in SME lending. The company continues to onboard new clients and added 1.8 million new users in Q3 2024. Banco Bradesco S.A. has a nationwide presence in Brazil and holds a strong position in key locations globally, making it one of the promising financial stocks to invest in.

While we acknowledge the potential of 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 timeframe. 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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