Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Investors interested in stocks from the Banks - Foreign sector have probably already heard of Barclays (BCS) and Banco Itau (ITUB) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and esti ...

Key Takeaways Here's how to find the best cheap stocks ($10 or less) on Wall Street to buy now and throughout 2026.Buy soaring $9 financial stock ITUB for big upside in 2026 and beyond.The S&P 500 is trading slightly below its all-time highs as it continues chopping around in the early months of 2026. Despite all the noise and a recent wave of selling across software, AI, and beyond, Wall Street is showing resilience as the big money remains focused on massive projected earnings growth in 2026 and more rate ...

Core Insights - Itau Unibanco Holding S.A. (ITUB) reported a recurring managerial result of R$12.3 billion ($2.35 billion) for Q4 2025, reflecting a year-over-year increase of 13.2% driven by higher revenues and an increase in managerial financial margin [1][9] - For the full year 2025, the company achieved recurring managerial results of R$46.8 billion ($8.93 billion), marking a 13.1% increase year over year [1] Revenue and Expenses - Operating revenues for Q4 2025 were R$47.6 billion ($9.1 billion), up 7.9% year over year, while total operating revenues for 2025 reached R$184 billion ($35.2 billion), an increase of 9.1% year over year [2] - The managerial financial margin increased by 7.3% year over year to R$31.5 billion ($6 billion), and commissions and fees rose by 7.4% year over year to R$12.6 billion ($2.4 billion) [2] Non-Interest Expenses - Non-interest expenses totaled R$17.3 billion ($3.3 billion), up 3.7% year over year, primarily due to the annual collective wage agreement, although efficiency gains partially offset this increase [3] - The efficiency ratio improved to 38.9% from 40.7% in the previous year, indicating enhanced profitability [3] Balance Sheet Position - As of December 31, 2025, total assets increased by 3.3% year over year to R$3.09 trillion ($590.5 billion), while liabilities rose by 3.9% sequentially to R$2.89 trillion ($551.2 billion) [4] - The credit portfolio, including private securities and financial guarantees, grew by 6.3% year over year to R$1.49 trillion ($284 billion) [5] Capital and Profitability Ratios - The Common Equity Tier 1 ratio as of December 31, 2025, was 12.3%, down from 13.7% a year earlier, while the annualized recurring managerial return on average equity increased to 24.4% from 22.1% [6] Overall Assessment - The fourth-quarter results were positively influenced by an increase in the managerial financial margin, and the declining efficiency ratio suggests improved profitability [7]

Financial Data and Key Metrics Changes - The company reported a consolidated net income of BRL 46.8 billion for 2025, doubling the value created compared to 2021, with a significant increase in ROE from 19.3% in 2021 to 23.4% [8][9] - The efficiency ratio improved from 44% to 38.8%, indicating a strong focus on cost management and operational efficiency [8][9] - The company distributed BRL 105 billion in cash dividends, resulting in a payout ratio of 57.9% [8] Business Line Data and Key Metrics Changes - The loan portfolio grew by 40% during the period, with a significant de-risking of certain portfolios to enhance quality and support future growth [7] - Retail banking saw a migration of 15 million clients to the Super App, achieving an NPS of 80 points, indicating strong client satisfaction [12] - In the insurance segment, recurring results increased by 130%, more than doubling outcomes in the period [13] Market Data and Key Metrics Changes - The corporate segment achieved BRL 1 trillion in transaction volume in acquiring, maintaining market leadership in credit and acquiring [14] - The company closed the year with a 26% market share and BRL 124 billion in originated transactions in Wholesale Banking [15] - Wealth Management Services reached BRL 4.1 trillion in assets under management, with a 15% growth in the fourth quarter [16][17] Company Strategy and Development Direction - The company emphasizes client centricity, risk management, and capital allocation as core pillars of its management model [3][4] - A significant focus on technology modernization and digital transformation has been highlighted as a critical enabler for scalability and efficiency [5][6] - The company aims to maintain a long-term perspective while adapting to market changes and leveraging opportunities in emerging technologies [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong risk management culture and a healthy portfolio operating at historically low credit cost levels [54] - The company anticipates a dynamic environment in 2026, with GDP growth projected at 1.9% and a potential interest rate cut starting in March [49][50] - The guidance for 2026 includes expected credit portfolio growth between 5.5% and 9.5%, with a focus on maintaining profitability and efficiency [50][51] Other Important Information - The company achieved a 99% reduction in incidents due to its modernization agenda, significantly enhancing operational efficiency [11] - The company has implemented reclassifications in its financial reporting to better reflect management practices, with no changes to the total results [44][45] Q&A Session Summary Question: Can the bank maintain ROI at 24%-25%? - Management indicated that while they do not provide long-term ROI guidance, they expect profitability to remain strong and close to 2025 levels, with a focus on maintaining a spread over the cost of capital [56][57] Question: What about the bank's leverage and capital management? - Management acknowledged the importance of maintaining a strong capital base and indicated that discussions about leverage are ongoing, particularly in light of potential volatility in the market [61][62] Question: Will 2026 capture a relevant change in the cost base? - Management confirmed that the bank is capturing efficiencies from previous investments in technology and operational improvements, which are expected to enhance profitability and efficiency moving forward [63][64]

Financial Data and Key Metrics Changes - The company reported a consolidated net income of BRL 46.8 billion for 2025, doubling the value created compared to 2021, with a significant increase in ROE from 19.3% in 2021 to 23.4% [7][8] - The efficiency ratio improved from 44% to 38.8%, indicating better cost management relative to revenue growth [7][8] - The company distributed BRL 105 billion in cash dividends, resulting in a payout ratio of 57.9% [7] Business Line Data and Key Metrics Changes - The loan portfolio grew by 40% during the period, with a significant de-risking of certain portfolios to enhance quality and support future growth [6] - In retail banking, the company migrated 15 million clients to a Super App, achieving an NPS of 80 points, and saw substantial transaction volumes from new features [11][12] - The corporate segment reached BRL 1 trillion in transaction volume, maintaining leadership in credit and acquiring [13][14] Market Data and Key Metrics Changes - The company achieved a 26% market share in wholesale banking, with BRL 124 billion in originated transactions [14] - In the insurance segment, recurring results increased by 130% year-over-year, indicating strong growth prospects [12] - The company reported a 5% improvement in payment and collection volumes, reflecting a strong market position [26] Company Strategy and Development Direction - The company emphasizes client centricity, risk management, and capital allocation as core pillars of its management model [3][4] - A significant focus on technology modernization and digital transformation has been highlighted as a key enabler for scalability and efficiency [5][6] - The company aims to maintain a long-term perspective while optimizing operational efficiency and expanding its service offerings [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong risk management culture and a healthy portfolio operating at historically low credit costs [50][51] - The company anticipates some volatility in the upcoming year but remains focused on capturing opportunities for growth [51] - Guidance for 2026 includes expectations for credit portfolio growth between 5.5% and 9.5%, with net interest income projected to grow between 5% and 9% [48][49] Other Important Information - The company achieved a 99% reduction in incidents due to its modernization agenda, significantly enhancing operational efficiency [10] - The company has a diversified business portfolio, with 18% of assets and 8% of results coming from outside Brazil [36] - The CET1 ratio was reported at 12.3% as of December 2025, indicating strong capital performance [39] Q&A Session Summary Question: Is the current ROI level of 24%-25% sustainable? - Management indicated that while they do not provide long-term ROI guidance, they expect profitability to remain strong and close to 2025 levels, with a focus on maintaining a spread over the cost of capital [54][55] Question: What are the future levers for efficiency and cost structure? - Management confirmed that investments in technology and digitalization are expected to yield operational efficiencies, allowing for a more streamlined cost structure moving into 2027 [60][61]

Financial Data and Key Metrics Changes - The consolidated net income for 2025 reached BRL 46.8 billion, doubling the value created compared to 2021, with a significant increase in ROE from 19.3% in 2021 to 23.4% [8][9] - The efficiency ratio improved from 44% to 38.8%, indicating a strong focus on cost management and operational efficiency [8][9] - The company distributed BRL 105 billion in cash dividends, resulting in a payout ratio of 57.9% [8] Business Line Data and Key Metrics Changes - The loan portfolio grew by 40% during the period, with a significant de-risking of certain portfolios to enhance quality [6][7] - In retail banking, the migration of 15 million clients to the Super App resulted in an NPS of 80 points, reflecting improved client experience [12] - The corporate segment achieved BRL 1 trillion in transaction volume in acquiring, maintaining market leadership in credit and acquiring [15] Market Data and Key Metrics Changes - The company achieved a 26% market share in wholesale banking, with BRL 124 billion in originated transactions [16] - In the insurance segment, recurring results increased by 130%, indicating strong growth prospects [13][14] - The bank's total shareholder return over the past five years has been outstanding, demonstrating its ability to deliver value [10] Company Strategy and Development Direction - The company emphasizes client centricity, risk management, and capital allocation as key pillars of its management model [3][4] - A significant investment in technology and digital transformation has been made to enhance operational scalability and efficiency [5][6] - The company aims to maintain a long-term perspective while optimizing its business model and service delivery [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of ongoing technological advancements and the centralized data architecture [5] - The company anticipates a dynamic environment in 2026, with expected GDP growth of 1.9% and a year-end Selic rate of 12.75% [48][49] - Management highlighted the importance of maintaining a strong capital base to navigate potential volatility in the market [52] Other Important Information - The company achieved a 99% reduction in incidents due to its modernization agenda, significantly enhancing operational efficiency [11] - The bank's delivery speed increased by 2,600%, showcasing a transformational shift in service delivery [11] - The company plans to continue investing in technology and digitalization to enhance client service and operational efficiency [64] Q&A Session Summary Question: Can the bank maintain ROI at 24%-25%? - Management indicated that they are optimistic about maintaining profitability levels close to those observed in 2025, but they do not provide long-term ROI guidance [54][55] Question: Will there be a review of leverage? - Management acknowledged the importance of maintaining a strong capital base and indicated that discussions about leverage are ongoing, but no immediate changes are expected [56][60] Question: How will efficiency improvements impact future performance? - Management confirmed that investments in technology and operational efficiency are expected to yield significant benefits, leading to a more streamlined cost structure [61][63]

São Paulo, February 5 th, 2026 Structural evolution 40% credit portfolio growth | 2021→2025 19.3% 20.3% 21.0% 22.2% 23.4% 44.0% 41.2% 39.9% 39.5% 38.8% 17.5 20.6 23.3 24.8 28.3 9.3 10.2 12.3 16.6 18.5 26.9 30.8 35.6 41.4 46.8 2021 2022 2023 2024 2025 ROE Efficiency R$ billion Managerial recurring results Value creation Cost of capital 2x +Value Creation 2021→ 2025 (1) Figures before taxes. Includes shares repurchase of R$3 billion, related to 2024 results distribution. 2 Results distribution¹ 2021→2025 >>> ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Banco Itau (ITUB) - Banco Itau currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, ITUB shares have increased by 12.33%, significantly outperforming the Zacks Banks - Foreign industry, which rose by 0.96% [5] - In a longer timeframe, ITUB's shares have risen by 16.88% over the past quarter and 67.8% over the last year, while the S&P 500 has only increased by 2.08% and 15.65%, respectively [6] Trading Volume - ITUB's average 20-day trading volume is 25,591,796 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for ITUB have been revised upwards, increasing the consensus estimate from $0.74 to $0.76 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [9] Conclusion - Given the positive performance metrics and earnings outlook, ITUB is positioned as a strong buy with a Momentum Score of B, making it a compelling investment option [11]

Core Viewpoint - Investors are evaluating the value opportunities presented by BNP Paribas SA (BNPQY) and Banco Itau (ITUB) in the foreign banking sector, with BNPQY currently appearing as the superior value option based on various valuation metrics [1][7]. Group 1: Zacks Rank and Earnings Outlook - Both BNP Paribas SA and Banco Itau hold a Zacks Rank of 1 (Strong Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - The Zacks Rank system is designed to favor stocks with strong earnings estimate revision trends, which is a key consideration for investors [2]. Group 2: Valuation Metrics - BNPQY has a forward P/E ratio of 7.81, while ITUB has a forward P/E of 10.59, suggesting that BNPQY may be undervalued compared to ITUB [5]. - The PEG ratio for BNPQY is 0.77, indicating a favorable valuation when considering expected earnings growth, whereas ITUB has a PEG ratio of 1.06 [5]. - BNPQY's P/B ratio is 0.79, which is significantly lower than ITUB's P/B of 2.38, further supporting the argument that BNPQY is undervalued [6]. - Based on these valuation metrics, BNPQY holds a Value grade of A, while ITUB has a Value grade of D, highlighting the relative attractiveness of BNPQY [6].