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Fast-paced Momentum Stock Bread Financial (BFH) Is Still Trading at a Bargain
Alliance Data SystemsAlliance Data Systems(US:BFH) ZACKSยท2025-10-27 13:51

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Bread Financial Holdings (BFH) Analysis - BFH has shown a four-week price change of 9.9%, indicating growing investor interest [3] - Over the past 12 weeks, BFH's stock gained 13.8%, with a beta of 1.41, suggesting it moves 41% more than the market [4] - BFH has a Momentum Score of A, indicating a favorable entry point for investors [5] Group 3: Earnings Estimates and Valuation - BFH has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.65, suggesting it is undervalued at 65 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides BFH, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles [8]