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Is Banco Bradesco (BBD) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Banco Bradesco (BBD - Free Report) . BBD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.02 right now. For comparison, its industry sports an average P/E of 11.41. BBD's Forward P/E has been as high as 11.06 and as low as 4.69, with a median of 9.01, all within the past year.

Investors will also notice that BBD has a PEG ratio of 1.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BBD's industry has an average PEG of 2.09 right now. BBD's PEG has been as high as 6.77 and as low as 0.53, with a median of 2.52, all within the past year.

Finally, investors will want to recognize that BBD has a P/CF ratio of 10.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BBD's P/CF compares to its industry's average P/CF of 13.73. Over the past 52 weeks, BBD's P/CF has been as high as 10.88 and as low as 3.75, with a median of 6.75.

These are only a few of the key metrics included in Banco Bradesco's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BBD looks like an impressive value stock at the moment.


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