Bread Financial Holdings, Inc. (BFH) Hits Fresh High: Is There Still Room to Run?

Company Performance - Bread Financial Holdings (BFH) shares have increased by 25.2% over the past month, reaching a new 52-week high of $76.66 [1] - Year-to-date, the stock has gained 24.2%, outperforming the Zacks Finance sector's 16.1% increase and the Zacks Financial - Miscellaneous Services industry's decline of 4.8% [1] Earnings and Revenue - In the last earnings report on October 23, 2025, Bread Financial reported an EPS of $4.02, significantly exceeding the consensus estimate of $2.11, and beat the revenue estimate by 0.46% [2] - For the current fiscal year, earnings are expected to be $10.19 per share with revenues of $3.82 billion, reflecting a 34.08% increase in EPS but a slight decrease of 0.47% in revenues [3] - For the next fiscal year, projected earnings are $9.19 per share on revenues of $3.95 billion, indicating a year-over-year decline of 9.77% in EPS but a growth of 3.28% in revenues [3] Valuation Metrics - Bread Financial has a Value Score of A, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of A [6] - The stock trades at 7.4X current fiscal year EPS estimates, below the peer industry average of 12.2X, and at 6.4X trailing cash flow compared to the peer group's average of 10.1X [7] - The PEG ratio stands at 0.48, positioning the company favorably among value investors [7] Zacks Rank - Bread Financial holds a Zacks Rank of 1 (Strong Buy), supported by a positive earnings estimate revision trend [8] - The stock aligns with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, indicating potential for future growth [9] Industry Comparison - Acadian Asset Management Inc. (AAMI), a peer in the industry, has a Zacks Rank of 2 (Buy) and shows strong earnings performance, having beaten consensus estimates by 4.11% [10][11] - AAMI is expected to post earnings of $4.72 per share on revenues of $621.54 million for the current fiscal year [11] - The Financial - Miscellaneous Services industry is performing well, with both BFH and AAMI benefiting from favorable market conditions [12]