Bread Financial Holdings (BFH) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Bread Financial Holdings (BFH) - BFH currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Over the past week, BFH shares increased by 3.3%, while the Zacks Financial - Miscellaneous Services industry remained flat [5] - In a longer timeframe, BFH's monthly price change is 20.44%, significantly outperforming the industry's 0.96% [5] - Over the past quarter, BFH shares rose by 17.54%, and over the last year, they gained 14.28%, compared to the S&P 500's increases of 4% and 14.09%, respectively [6] Trading Volume - BFH's average 20-day trading volume is 749,360 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, three earnings estimates for BFH have been revised upwards, with no downward revisions, boosting the consensus estimate from $8.33 to $10.18 [9] - For the next fiscal year, six estimates have also moved higher, indicating positive sentiment around BFH's earnings potential [9] Conclusion - Given the strong performance metrics and positive earnings outlook, BFH is identified as a promising momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]