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Bread Financial Holdings, Inc. (BFH) Hit a 52 Week High, Can the Run Continue?
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Shares of Bread Financial Holdings (BFH - Free Report) have been strong performers lately, with the stock up 17.1% over the past month. The stock hit a new 52-week high of $102 in the previous session. Bread Financial has gained 37.3% since the start of the year compared to the 1.9% gain for the Zacks Finance sector and the -9.4% return for the Zacks Financial - Miscellaneous Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 23, 2026, Bread Financial reported EPS of $4.18 versus consensus estimate of $3 while it beat the consensus revenue estimate by 1.12%.
For the current fiscal year, Bread Financial is expected to post earnings of $10.65 per share on $3.94 in revenues. This represents a -11.91% change in EPS on a 2.52% change in revenues. For the next fiscal year, the company is expected to earn $11.83 per share on $4.08 in revenues. This represents a year-over-year change of 11.02% and 3.54%, respectively.
Valuation Metrics
Though Bread Financial has recently hit a 52-week high, what is next for Bread Financial? 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 they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Bread Financial has a Value Score of B. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.7X. On a trailing cash flow basis, the stock currently trades at 6.2X versus its peer group's average of 9.1X. Additionally, the stock has a PEG ratio of 0.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
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 Pagaya Technologies Ltd. (PGY - Free Report) . PGY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Pagaya Technologies Ltd. beat our consensus estimate by 52.08%, and for the current fiscal year, PGY is expected to post earnings of $3.23 per share on revenue of $1.48 billion.
Shares of Pagaya Technologies Ltd. have gained 15.8% over the past month, and currently trade at a forward P/E of 4.88X and a P/CF of 5.14X.
The Financial - Miscellaneous Services industry may rank in the bottom 58% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BFH and PGY, even beyond their own solid fundamental situation.
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Bread Financial Holdings, Inc. (BFH) Hit a 52 Week High, Can the Run Continue?
Shares of Bread Financial Holdings (BFH - Free Report) have been strong performers lately, with the stock up 17.1% over the past month. The stock hit a new 52-week high of $102 in the previous session. Bread Financial has gained 37.3% since the start of the year compared to the 1.9% gain for the Zacks Finance sector and the -9.4% return for the Zacks Financial - Miscellaneous Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 23, 2026, Bread Financial reported EPS of $4.18 versus consensus estimate of $3 while it beat the consensus revenue estimate by 1.12%.
For the current fiscal year, Bread Financial is expected to post earnings of $10.65 per share on $3.94 in revenues. This represents a -11.91% change in EPS on a 2.52% change in revenues. For the next fiscal year, the company is expected to earn $11.83 per share on $4.08 in revenues. This represents a year-over-year change of 11.02% and 3.54%, respectively.
Valuation Metrics
Though Bread Financial has recently hit a 52-week high, what is next for Bread Financial? 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 they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Bread Financial has a Value Score of B. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.7X. On a trailing cash flow basis, the stock currently trades at 6.2X versus its peer group's average of 9.1X. Additionally, the stock has a PEG ratio of 0.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
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 Pagaya Technologies Ltd. (PGY - Free Report) . PGY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Pagaya Technologies Ltd. beat our consensus estimate by 52.08%, and for the current fiscal year, PGY is expected to post earnings of $3.23 per share on revenue of $1.48 billion.
Shares of Pagaya Technologies Ltd. have gained 15.8% over the past month, and currently trade at a forward P/E of 4.88X and a P/CF of 5.14X.
The Financial - Miscellaneous Services industry may rank in the bottom 58% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BFH and PGY, even beyond their own solid fundamental situation.