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Is Banco Bradesco (BBD) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Banco Bradesco (BBD - Free Report) . BBD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.41 right now. For comparison, its industry sports an average P/E of 10.76. Over the last 12 months, BBD's Forward P/E has been as high as 11.06 and as low as 5.22, with a median of 8.96.

Investors will also notice that BBD has a PEG ratio of 1.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BBD's industry has an average PEG of 1.97 right now. BBD's PEG has been as high as 6.77 and as low as 0.86, with a median of 2.99, all within the past year.

Finally, investors will want to recognize that BBD has a P/CF ratio of 9.57. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.73. Over the past year, BBD's P/CF has been as high as 11.21 and as low as 3.99, with a median of 7.21.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Banco Bradesco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBD feels like a great value stock at the moment.


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