BFH or AXP: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors are evaluating the value proposition of Bread Financial Holdings (BFH) versus American Express (AXP), with a focus on their respective valuation metrics and earnings outlooks [1]. Group 1: Zacks Rank and Earnings Outlook - Both BFH and AXP currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are crucial for investors seeking growth [2]. Group 2: Valuation Metrics - BFH has a forward P/E ratio of 6.29, significantly lower than AXP's forward P/E of 24.12, suggesting that BFH may be undervalued [5]. - The PEG ratio for BFH is 0.47, indicating a favorable valuation relative to its expected earnings growth, while AXP's PEG ratio stands at 1.98 [5]. - BFH's P/B ratio is 0.87, compared to AXP's P/B of 7.87, further highlighting BFH's relative undervaluation [6]. - Based on these valuation metrics, BFH is assigned a Value grade of A, while AXP receives a Value grade of C, indicating that BFH is currently the superior value option [6].