Bread Financial (BFH) Is Attractively Priced Despite Fast-paced Momentum

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Bread Financial Holdings (BFH) Analysis - Bread Financial Holdings (BFH) has shown a four-week price change of 9%, indicating growing investor interest [4] - BFH has gained 0.7% over the past 12 weeks, with a beta of 1.51, suggesting it moves 51% more than the market [5] - The stock has a Momentum Score of B, indicating a favorable time to invest [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 trading at a Price-to-Sales ratio of 0.66, suggesting it is undervalued, as investors pay only 66 cents for each dollar of sales [7] Group 4: Additional 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 strategies tailored to help investors find winning stock picks [9]