Banco do Brasil (BBAS3) and Bradesco (BBDC4): Top 5 Stock Picks to Buy or Sell in October 2025
- 1. Is Banco do Brasil (BBAS3) Finally Back on Investors’ Radar?
- 2. Bradesco (BBDC4) Surges 50%: Is the Rally Just Getting Started?
- 3. JPMorgan’s Warning: Is Banco do Brasil (BBAS3) Heading for Another Rough Quarter?
- 4. Cogna (COGN3) Jumps 6%: Why Education Stocks Are Heating Up
- 5. WEG (WEGE3): Neutral Earnings, Geopolitical Jitters—Time to Bail?
- FAQs: Your Burning Questions Answered
Brazilian banking giants Banco do Brasil (BBAS3) and Bradesco (BBDC4) are back in the spotlight as investors weigh their potential amid shifting market dynamics. With BBAS3 showing signs of recovery and BBDC4 navigating a strategic turnaround, here’s a DEEP dive into the top 5 stock highlights this week—plus insights on whether it’s time to buy, hold, or sell.
1. Is Banco do Brasil (BBAS3) Finally Back on Investors’ Radar?
Banco do Brasil’s stock has taken a beating lately, thanks to declining earnings. But here’s the twist: a recent Bank of America (BofA) survey of 34 global and local investors (conducted October 13–17, 2025) suggests Optimism is creeping back. The consensus? The worst might be over. Analysts point to improving asset quality and a stabilizing agribusiness portfolio as key drivers. Still, JPMorgan remains cautious, citing lingering credit risks. So, is BBAS3 a rebound play or a value trap? The BTCC research team leans cautiously bullish—but more data is needed.
2. Bradesco (BBDC4) Surges 50%: Is the Rally Just Getting Started?
Under CEO Marcelo Noronha’s “step-by-step” restructuring, Bradesco has clawed back 50% from its lows. Market sentiment is warming up, but skeptics argue the bank’s turnaround is still mid-course. TradingView charts show BBDC4 breaking past key resistance levels, yet valuation multiples remain below pre-crisis peaks. One thing’s clear: this isn’t a quick flip. As one São Paulo-based trader quipped, “Turning a bank this size is like steering an aircraft carrier—you won’t see results overnight.”
3. JPMorgan’s Warning: Is Banco do Brasil (BBAS3) Heading for Another Rough Quarter?
BBAS3’s Q2 earnings plummeted over 50%, battered by agribusiness defaults and tighter central bank rules. JPMorgan’s latest note flags persistent headwinds for small-to-mid-sized enterprise (SME) loans. But here’s the counterargument: the bank’s rural lending arm historically rebounds faster than peers. Coinmarketcap data shows agricultural commodity prices stabilizing—a potential tailwind. “It’s a high-risk, high-reward bet,” admits a BTCC analyst. “If Brazil’s harvest beats expectations, BBAS3 could surprise.”
4. Cogna (COGN3) Jumps 6%: Why Education Stocks Are Heating Up
While not a bank, Cogna’s 6% surge on October 20 made it one of B3’s most-traded stocks. Why? Falling inflation projections and rate-cut hopes are boosting growth sectors. Ágora Investimentos notes COGN3’s bullish guidance for late 2025, but warns: “Execution risk remains.” Fun fact: This stock’s volatility makes crypto look tame—its 30-day beta is nearly double Bitcoin’s.
5. WEG (WEGE3): Neutral Earnings, Geopolitical Jitters—Time to Bail?
WEG’s Q3 earnings met estimates (R$1.65B net profit, up 4.5% YoY), but analysts called it “meh” compared to its stellar past. With 60% of revenues tied to exports, Middle East tensions and EU tariff threats loom large. “I’d wait for a pullback below R$28,” suggests a fund manager who prefers BBAS3 for now. Source: TradingView.
FAQs: Your Burning Questions Answered
Which Brazilian bank stock has more upside: BBAS3 or BBDC4?
Short term, BBDC4’s momentum is stronger (+50% vs. BBAS3’s +22% YTD). Long term, BBAS3’s agribusiness exposure offers higher cyclical upside.
Is Cogna (COGN3) a better growth play than banks?
For risk-tolerant investors, yes—but monitor enrollment trends and government funding policies closely.
How does WEGE3’s valuation compare to historical levels?
Its P/E of 18x is below its 5-year average (22x), but export risks justify the discount.
