Banco Bradesco S.A. (NYSE:BBD) Stock is Soaring, Here is Why

IQST stock

The Banco Bradesco S.A. (BBD) shares are trading at higher $4.02 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $6.38.

To add more color to this target, the company’s high over the last year is $8.40 and the low is $2.67. Over the last 52 weeks, BBD is down -52.14% while the S&P 500 is up 0.30%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, BBD reported a profit of $1.09 billion. Banco Bradesco S.A. also saw revenues increase to $6.63 billion. In addition, BBD has free cash flow of $7.65 billion as of 03-2020.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BBD has a short ratio of 0.28 and outstanding shares of 8.84B.

Company Outlook

BBD has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 22.85 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.70. Investors should also keep an eye on sector updates as BBD has historically followed its peers on positive news.

All told, Banco Bradesco S.A. BBD has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BBD represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Banco Bradesco S.A. BBD is now commanding a market cap of 35.52B and a float of 6.34B. BBD is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BBD stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in BBD, either long or short, and we have not been compensated for this article.