Banco Bradesco (BBD) Upgraded to Buy: Here's Why

Core Viewpoint - Banco Bradesco has been upgraded to a Zacks Rank 2 (Buy), reflecting an upward trend in earnings estimates, which significantly impacts stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, indicating a positive earnings outlook for Banco Bradesco that could lead to increased buying pressure and stock price appreciation [1][3]. - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][5]. Recent Performance and Projections - Banco Bradesco is expected to earn $0.42 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 7.6% over the past three months [8]. - The upgrade to Zacks Rank 2 places Banco Bradesco in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating [9].