Banco Bradesco SA ADR

Guidewire Software reported strong cloud deal activity and expanding AI adoption in its fiscal third quarter of 2026, closing 11 cloud deals including a seven-year expansion with Auto Club of Southern California and a strategic net-new cloud win with Bradesco Seguros in Brazil. The company also completed five ProNavigator deals, embedding AI-driven workflow automation into core insurance operations, and secured three PricingCenter wins, including its first U.S. deal at Oklahoma Farm Bureau. However, services revenue surged 32% year over year to $71.8 million, carrying a non-GAAP gross margin of just 14.3% compared with 74.1% for subscription and support, which dilutes the benefits of subscription-led growth. For fiscal 2026, Guidewire expects services revenues of about $270 million and a services gross margin of about 14%, while the stock currently carries a Zacks Rank #3 (Hold) with a Growth Score of B but weaker Value and Momentum scores.

Banco Bradesco holds a Zacks Rank #2 (Buy) and a Value grade of A, signaling it may be undervalued. The stock trades at a P/E of 7.33, well below the foreign bank industry average of 11.08, and its PEG ratio of 0.42 compares favorably to the industry's 0.67. BBD's price-to-book ratio of 1.15 is less than half the industry's 2.85, while its price-to-sales ratio of 0.8 and price-to-cash-flow ratio of 7.59 also sit far below industry averages of 2.22 and 18.20, respectively. Macro Bank, another foreign bank with a Zacks Rank #1 (Strong Buy) and Value grade of A, shows similarly attractive valuations, including a forward P/E of 5.21 and a PEG of 0.38.