Dividend Darling With Upside: Banco Bradesco S.A. (NYSE:BBD)

If investors are looking for a stable dividend stock with upside, Banco Bradesco S.A. (NYSE:BBD) could be one that fits the bill.  The stock currently provides a dividend yield of 0.61% for the Financial company.  

On a consensus basis, analysts have a Buy/Sell rating of 2.10, which is based on a 1 to 5 scale. The sell-side is projecting that it will reach $9.88 within the next 12 months.  This is a solid upside to a recent bid of $9.80.  The stock market can be influenced by many different factors such as news, politics, earnings reports, or even company rumors. Often times the market may not react as expected to certain events. This may cause the investor to become frustrated at times. Sometimes certain market moves may seem to go against prevailing logic. This is why it can be extremely hard to predict near-term moves with any certainty. Taking a big picture look at the financial markets may help offer a clearer picture of how all the different aspects contribute to market movements. Figuring out why a certain move happened may help shed some light when the same scenario arises again in the future.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Banco Bradesco S.A. (NYSE:BBD)’s stock was 6.80%.  Over the last week of the month, it was -1.06%, 43.31% over the last quarter, and  40.76% for the past six months.

Over the past 50 days, Banco Bradesco S.A. stock’s -2.73% off of the high and 45.32% removed from the low.  Their 52-Week High and Low are noted here.  -17.07% (High), 51.87%, (Low). 

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Banco Bradesco S.A.’s EPS for the trailing 12 months is 0.70.  Their EPS should be compared to other companies in the Financial sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Banco Bradesco S.A.’s  P/E ratio is 14.00. 

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

As we move deeper into earnings season, investors and analysts will be closely watching which companies look they are getting things right. Many investors will be following which companies beat or miss the estimates by a wide margin. Large surprise factors can cause a stock to jump or fall shortly after the actual numbers are released. Investors may also be tracking which industry leaders come out on top during the latest round of earnings reports. Tracking the sectors that are poised for growth may help give the investor a good idea for the types of stocks they may want to add to the portfolio as we get closer to the end of the current calendar year.

Banco Bradesco S.A. (NYSE:BBD)’s RSI (Relative Strength Index) is 55.30.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

Many investors enter the stock market without a plan in place. Investment goals may be a highly important part of coming out on top. Investors may need to set realistic and measureable goals in order to build a baseline for success. Defining investment goals clearly can help keep individual investors from making common mistakes and losing their shirts. Creating a plan for entering the equity market may start by setting up goals and outlining the objectives of the individual. These goals can differ depending on the person and situation. Many investors will opt to follow strategies put in place by others. This may work fine for some, but not as well for others. Keeping a close eye on particular stocks in the portfolio may help the investor when the time comes to adjust the holdings. Being able to adapt to rapidly changing market environments may turn out to be immensely important when the winds of uncertainty blow in.

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