Bread Financial (BFH) Shows Fast-paced Momentum But Is Still a Bargain Stock

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Bread Financial Holdings (BFH) Analysis - Bread Financial Holdings (BFH) has demonstrated a four-week price change of 7.1%, indicating growing investor interest [4] - Over the past 12 weeks, BFH's stock has gained 6%, with a beta of 1.51, suggesting it moves 51% more than the market [5] - BFH has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to BFH earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - BFH is currently trading at a Price-to-Sales ratio of 0.62, suggesting it is undervalued at 62 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides BFH, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [9]