8 Cheap Penny Stocks to Buy Right Now

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

Share Price: $2.69

Forward P/E: 8.54

EPS Growth This Year: 9.40%

Number of Hedge Fund Holders: 20

Formerly known as Banco Brasileiro de Descontos SA, Banco Bradesco (NYSE:BBD) is a public company based in Brazil that engages in the Banking Services Industry Group. It operates as a wide-ranging commercial bank in terms of credit operations, total assets, and the volume of funding and deposits. It boasts a broad range of banking and financial services and products for key national and international institutions, companies, and individuals in Brazil and abroad.

The bank is on the path to solid and safe profitability growth. It expanded its portfolio in all segments, including the wholesale bank. Overall, Banco Bradesco (NYSE:BBD) is growing in line with the market, experiencing improvement in NPL in all segments. It also posted growth in the coverage ratio, and its operating expenses are growing in line with its expectations, accelerating its footprint with discipline.

The bank is experiencing growth in SMEs, MEs, foreign trade, real estate, and working capital. This growth trajectory ensures a good balance for the company in the coming quarters, highlighting its strong operational model. It also demonstrates its capability of commercial attraction, as it is improving its portfolio management by deploying new models.

Banco Bradesco (NYSE:BBD) is likely to continue performing well in the second half of 2024, primarily due to its new modeling system, the intensive use of machine learning, process improvement, credit card management, and an increase in personnel. It is also delivering more expanded use of generative AI in its operations, streamlining processes by helping interactions with employees and clients in several segments.

Overall, BBD ranks first among the 8 cheap penny stocks to buy right now. While we acknowledge the potential of penny stocks, 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.

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