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Bread Financial Holdings, Inc. (BFH) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Bread Financial Holdings (BFH - Free Report) ? Shares have been on the move with the stock up 25.2% over the past month. The stock hit a new 52-week high of $76.66 in the previous session. Bread Financial has gained 24.2% since the start of the year compared to the 16.1% move for the Zacks Finance sector and the -4.8% return for the Zacks Financial - Miscellaneous Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 23, 2025, Bread Financial reported EPS of $4.02 versus consensus estimate of $2.11 while it beat the consensus revenue estimate by 0.46%.
For the current fiscal year, Bread Financial is expected to post earnings of $10.19 per share on $3.82 in revenues. This represents a 34.08% change in EPS on a -0.47% change in revenues. For the next fiscal year, the company is expected to earn $9.19 per share on $3.95 in revenues. This represents a year-over-year change of -9.77% and 3.28%, respectively.
Valuation Metrics
Bread Financial may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Bread Financial has a Value Score of A. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 6.4X versus its peer group's average of 10.1X. Additionally, the stock has a PEG ratio of 0.48. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Bread Financial an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Bread Financial currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Bread Financial fits the bill. Thus, it seems as though Bread Financial shares could have potential in the weeks and months to come.
How Does BFH Stack Up to the Competition?
Shares of BFH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Acadian Asset Management Inc. (AAMI - Free Report) . AAMI has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of F.
Earnings were strong last quarter. Acadian Asset Management Inc. beat our consensus estimate by 4.11%, and for the current fiscal year, AAMI is expected to post earnings of $4.72 per share on revenue of $621.54 million.
Shares of Acadian Asset Management Inc. have gained 13.1% over the past month, and currently trade at a forward P/E of 12.92X and a P/CF of 14.39X.
The Financial - Miscellaneous Services industry is in the top 30% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BFH and AAMI, even beyond their own solid fundamental situation.
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Bread Financial Holdings, Inc. (BFH) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Bread Financial Holdings (BFH - Free Report) ? Shares have been on the move with the stock up 25.2% over the past month. The stock hit a new 52-week high of $76.66 in the previous session. Bread Financial has gained 24.2% since the start of the year compared to the 16.1% move for the Zacks Finance sector and the -4.8% return for the Zacks Financial - Miscellaneous Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 23, 2025, Bread Financial reported EPS of $4.02 versus consensus estimate of $2.11 while it beat the consensus revenue estimate by 0.46%.
For the current fiscal year, Bread Financial is expected to post earnings of $10.19 per share on $3.82 in revenues. This represents a 34.08% change in EPS on a -0.47% change in revenues. For the next fiscal year, the company is expected to earn $9.19 per share on $3.95 in revenues. This represents a year-over-year change of -9.77% and 3.28%, respectively.
Valuation Metrics
Bread Financial may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Bread Financial has a Value Score of A. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 6.4X versus its peer group's average of 10.1X. Additionally, the stock has a PEG ratio of 0.48. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Bread Financial an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Bread Financial currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Bread Financial fits the bill. Thus, it seems as though Bread Financial shares could have potential in the weeks and months to come.
How Does BFH Stack Up to the Competition?
Shares of BFH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Acadian Asset Management Inc. (AAMI - Free Report) . AAMI has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of F.
Earnings were strong last quarter. Acadian Asset Management Inc. beat our consensus estimate by 4.11%, and for the current fiscal year, AAMI is expected to post earnings of $4.72 per share on revenue of $621.54 million.
Shares of Acadian Asset Management Inc. have gained 13.1% over the past month, and currently trade at a forward P/E of 12.92X and a P/CF of 14.39X.
The Financial - Miscellaneous Services industry is in the top 30% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BFH and AAMI, even beyond their own solid fundamental situation.