Why Banco Bradesco SA (BBD) Went Up On Tuesday?

We recently published a list of Pulse of The Market: Tuesday’s 10 Top Performers. In this article, we are going to take a look at where Banco Bradesco SA (NYSE:BBD) stands against other Tuesday’s top performers.

A lackluster trading persisted on the stock market on Tuesday, with all major indices finishing in the green territory, but eked out only slight gains.

The tech-heavy Nasdaq rallied the most, up 0.46 percent, followed by the S&P 500 with 0.16 percent, and the Dow Jones with a marginal 0.01 percent.

Despite the muted trading, investors poured funds into several companies, pushing their prices to achieve modest gains. In this article, we listed the 10 top performers today and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

A customer withdrawing money from an ATM, illustrating the company’s widespread availability of accounts.

Banco Bradesco SA (NYSE:BBD)

Banco Bradesco increased its share prices by 3.38 percent on Tuesday to end at $2.2950 apiece following news that Brazil’s central bank is set to carry out more rate hikes in their next monetary board meetings.

BBD, one of Brazil’s largest private banks, is set to benefit from the imposition of higher rates as it could potentially prop up its net interest income.

Last week, Brazil’s central bank pulled the trigger for a 1-percentage point rate hike, raising it to 14.25 percent per annum, an adjustment that was widely anticipated by analysts.

According to the central bank, there is enough room for more rate hikes, albeit the next monetary board meetings will see lower increases.

“Due to the lags inherent to the ongoing monetary cycle, the Committee also deemed appropriate to communicate that the next move would be of a smaller magnitude,” monetary policymakers said.

Overall, BBD ranks 8th on our list of Tuesday’s top performers. While we acknowledge the potential of BBD as an investment, our conviction lies in the belief that some 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 as promising as BBD but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.