10 Best Penny Stocks to Buy According to Hedge Funds

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

​Stock Price: $3.17

Number of Hedge Fund Holders: 23

Banco Bradesco S.A. (NYSE:BBD) is one of the best penny stocks to buy according to hedge funds. Banco Bradesco S.A. (NYSE:BBD) reported a recurring net income of R$6.1 billion in its fiscal Q2 2025 results, reflecting a growth of 3.5% quarter-over-quarter and 28.6% year-over-year. Resultantly, ROAE topped 14.6% in the quarter.

Management further reported that revenue for the quarter reached R$34.0 billion, reflecting a growth of 15.1% year-over-year. This growth was driven by “an expressive growth” across all lines, including net interest income, income from insurance, and fee and commission income.

Banco Bradesco S.A. (NYSE:BBD) added that as per its guidance, revenue performance would be the primary reason behind the company’s profitability increase in 2025.

Banco Bradesco S.A. (NYSE:BBD) received a rating update on September 30, with Bank of America Securities analyst Mario Pierry maintaining a Buy rating on the stock and raising the price target from $3.19 to $4.12.

The analyst consensus on Banco Bradesco S.A. (NYSE:BBD) is currently a Moderate Buy, with the stock’s median price target of $3.17 implying an upside of 29.34% from current levels.

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.

The company has a broad range of banking and financial services and products for key national and international institutions, companies, and individuals in Brazil and abroad.