Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Bread Financial Holdings (BFH)
Headquartered in Columbus, OH, Bread Financial (formerly Alliance Data), an S&P MidCap 400 company, is a tech-forward financial services company, offering simple, personalized payment, lending and saving solutions. The company creates opportunities for customers and partners through digitally-enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences.
BFH sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Financial Transaction Services industry's P/E of 13.9X, shares of Bread Financial Holdings are trading at a forward P/E of 2.8X. BFH also has a PEG Ratio of 0.1, a Price/Cash Flow ratio of 4X, and a Price/Sales ratio of 0.4X.
Many value investors pay close attention to a company's earnings as well. For BFH, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.67 to $12.94 per share for 2023. Per share BFH boasts an average earnings surprise of 126.3%.
Investors should take the time to consider BFH for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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