Banco Bradesco S.A. (BBD) Is Up 57% In 2025. Here Is Why

Banco Bradesco S.A. (NYSE:BBD) is among the 10 Most Undervalued Stocks to Buy for Under $5. The São Paulo-based company provides banking products and services to individuals and corporations in Brazil and internationally. It is one of the largest financial services groups in Latin America, having been in the market for over 80 years.

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

The stock has returned nearly 57% year-to-date on the back of strong earnings, resulting in positive investor sentiment. Last month, Banco Bradesco S.A. (NYSE:BBD) reported financial results for the first quarter of fiscal 2025, with recurring net income growing 39% year-over-year to BRL 5.9 billion, whereas the bank’s revenue surged 15% to BRL 32 billion.

Recent analyst ratings are also driving positive momentum for Banco Bradesco S.A. (NYSE:BBD). On May 28, Citigroup upgraded the stock’s rating to Buy from Neutral, citing an encouraging outlook for the company’s ROE in the short and mid-term. Analysts also expect an improvement in the bank’s risk-adjusted revenues.

This follows HSBC’s revision earlier in the year, when it signaled confidence in Banco Bradesco S.A. (NYSE:BBD) by upgrading the stock from Hold to Buy. The bank’s low forward P/E ratio and share price also make it an attractive entry point for investors. It is among the most undervalued stocks to buy for under $5.

While we acknowledge the potential of BBD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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