Opinions The Panic-Proof Portfolio (Stockchase Research)
Bread Financial HoldingsBFHPAST TOP PICKApr 04, 2024
Stock price when the opinion was issued
As of Jun 02, 2026. Market Open.
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Pros: a cheap stock under 8x PE, have long-standing relationships with recognizable brands, is a real fintech lender, and is up 84% the past 12 months. Cons: Earnings have been lumpy over the years, volatile, their credit cart delinquency rate was 5.8% last year, higher than those of his peers, and earning are expected to decline the next two years.
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Premium contentPremium contentPremium contentPremium contentBFH offers tech based lending, payment, and credit card financial services. It trades at 3x earnings, under book value and supports a ROE of 21%. Quarterly cash reserves are growing, while debit is retired. It pays a decent dividend, backed by a payout ratio under 10% of cash flow. We recommend a stop-loss at $21, looking to achieve $34 -- upside potential of 21%. Yield 3.0%
(Analysts’ price target is $34.00)
Our PAST TOP PICK with BFH is progressing well. To remain disciplined, we recommend trailing up the stop (from $31) to $34 at this time.