Investors Eye Value Appeal of BFH vs. FUTU
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Rating Comparison: Bread Financial Holdings (BFH) currently holds a Zacks Rank of 1 (Strong Buy), while Futu Holdings (FUTU) has a Zacks Rank of 5 (Strong Sell), indicating that BFH's earnings estimate revision activity is more favorable, leading to a more optimistic outlook from investors.
- Valuation Metrics Analysis: BFH's forward P/E ratio stands at 9.64, lower than FUTU's 10.80, and BFH's PEG ratio is 0.93 compared to FUTU's 1.13, suggesting that BFH is more attractive to value investors.
- Price-to-Book Ratio Comparison: BFH's P/B ratio of 1.24 is significantly lower than FUTU's 2.56, indicating that BFH's market value relative to its book value is more appealing, potentially attracting more value-focused investors.
- Improving Earnings Outlook: BFH's improving earnings outlook makes it stand out in the Zacks Rank model, and combined with the aforementioned valuation metrics, BFH is considered the superior value option at present, likely drawing more investor interest.
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Analyst Views on BFH
Wall Street analysts forecast BFH stock price to fall
12 Analyst Rating
5 Buy
4 Hold
3 Sell
Hold
Current: 101.430
Low
64.00
Averages
83.25
High
98.00
Current: 101.430
Low
64.00
Averages
83.25
High
98.00
About BFH
Bread Financial Holdings, Inc. is a tech-forward financial services company which is engaged in providing simple, personalized payment, lending, and saving solutions. The Company's product offerings consist of co-brand and private label credit card programs with retailers and other brand partners; direct-to-consumer (DTC); proprietary general purpose credit cards; Bread Pay products; and Bread Savings products. Its payment solutions, including Bread Financial general purpose credit cards and savings products. Its private label credit cards are partner-branded credit cards used by consumers for the purchase of goods and services from that partner. Bread Pay is its payment technology solution for pay-over-time products. The Company's products are supported by various services and capabilities, including risk management, underwriting, and funding services; credit card and other loan processing and servicing; fraud prevention; marketing, and data and analytics; and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investors Eye Value Appeal of BFH vs. FUTU
- Rating Comparison: Bread Financial Holdings (BFH) currently holds a Zacks Rank of 1 (Strong Buy), while Futu Holdings (FUTU) has a Zacks Rank of 5 (Strong Sell), indicating that BFH's earnings estimate revision activity is more favorable, leading to a more optimistic outlook from investors.
- Valuation Metrics Analysis: BFH's forward P/E ratio stands at 9.64, lower than FUTU's 10.80, and BFH's PEG ratio is 0.93 compared to FUTU's 1.13, suggesting that BFH is more attractive to value investors.
- Price-to-Book Ratio Comparison: BFH's P/B ratio of 1.24 is significantly lower than FUTU's 2.56, indicating that BFH's market value relative to its book value is more appealing, potentially attracting more value-focused investors.
- Improving Earnings Outlook: BFH's improving earnings outlook makes it stand out in the Zacks Rank model, and combined with the aforementioned valuation metrics, BFH is considered the superior value option at present, likely drawing more investor interest.
See More
Bread Financial Holdings Provides 2026 Performance Update
- Improved Loss Rate: As of May 31, 2026, Bread Financial's net principal loss rate decreased to 6.98% from 7.97% in 2025, indicating effective risk management that may enhance investor confidence moving forward.
- Declining Delinquency Rate: The delinquency rate fell to 5.24% as of May 31, 2026, down from 5.71% in 2025, suggesting positive progress in customer credit management and repayment capabilities, which could bolster future profitability.
- Loan Growth: Total credit card and other loans reached $18.363 billion as of May 31, 2026, a 2.6% increase from $17.702 billion in 2025, reflecting the company's success in expanding market demand and customer base.
- Enhanced Market Competitiveness: Bread Financial's ongoing innovation in providing personalized payment, lending, and saving solutions, combined with its 30 years of industry experience, strengthens its competitive position in the U.S. consumer financial services market, likely driving future business growth.
See More
High-Yield Savings Accounts Cut Rates Despite Fed Stance
- Rate Cuts Trend: Four high-yield savings accounts operated by Apple, Ally Financial, Capital One, and Marcus by Goldman Sachs have recently cut their rates, resulting in a 5 basis point drop in the peer median savings rate to 3.4%, indicating a lack of optimism in the market regarding future Fed rate cuts.
- Market Expectation Shift: Although the Fed has not cut rates since December, elevated inflation and a strong jobs report have pushed back expectations for further cuts this year, with some traders even pricing in potential rate hikes.
- Increased Deposit Competition: BTIG analysts suggest that despite the rate cuts, competition for deposits among online banks may intensify, especially as the Trump administration approves more bank applications, which could influence future deposit rate trends.
- CD Advantages: Currently, Bread Financial and LendingClub offer a 4% annual percentage yield, while other 1-year CDs under BTIG's coverage yield less than 4%, with CDs providing the advantage of locking in rates, although early withdrawals may incur penalties.
See More
Fed Rate Hike Expectations Impact Savings Yields
- Inflation Pressure Intensifies: According to AAA, the current national average gasoline price stands at $4.459 per gallon, up from $3.174 a year ago, reflecting the ongoing impact of the Iran war on fuel prices, which exacerbates consumer living costs.
- Rate Expectation Shifts: The CME Group's FedWatch indicates nearly a 50% likelihood of a Fed rate hike in December, causing savers to feel uneasy about future rate trends, which impacts yields on cash instruments.
- Rising Bank Deposit Rates: Bread Financial has raised its 1-year CD annual percentage yield to 4%, an increase of 15 basis points from the previous week, driven by loan growth and rate expectations, attracting more savers' attention.
- Short-Term Cash Investment Appeal: While current CD rates, such as Popular Direct's 12-month CD offering 4.11%, are attractive, analysts warn that these yields may not keep pace with inflation long-term and could adjust upon maturity, affecting investors' return expectations.
See More
Bread Financial Provides Performance Update
- Improved Loss Rate: As of April 2026, Bread Financial's net principal loss rate decreased to 7.09% from 7.85% in 2025, indicating effective risk management and enhancing investor confidence in the company's financial health.
- Declining Delinquency Rate: The delinquency rate fell to 5.34% as of April 2026, down from 5.73% in 2025, reflecting positive progress in credit quality management, which helps improve customer satisfaction and reduce potential losses.
- Loan Growth: Total credit card and other loans reached $18.123 billion as of April 2026, a 2.0% increase from $17.721 billion in 2025, showcasing the company's strong performance amid recovering market demand and further solidifying its market position.
- Expanded Customer Base: Bread Financial has continued to attract new customers over the past year, particularly in travel, entertainment, and health & beauty sectors, by offering personalized payment and lending solutions, thereby strengthening partnerships with well-known brands and driving sustainable business growth.
See More
Brooktree Capital Management Sells Shares of Bread Financial Holdings
- Share Reduction Details: Brooktree Capital Management sold 63,530 shares of Bread Financial Holdings in Q1 2026, with an estimated transaction value of $4.68 million, reducing its stake to 5.85% of the fund's AUM.
- Stock Performance: As of May 5, 2026, Bread Financial's shares were priced at $85.09, reflecting a 76.5% increase over the past year, significantly outperforming the S&P 500 by 48.03 percentage points, indicating strong market performance.
- Financial Health: The company reported a net income of $181 million in Q1, up $43 million year-over-year, with diluted earnings per share rising 50% to $4.15, showcasing sustained profitability improvements.
- Credit Metrics Improvement: Bread's net loss rate decreased from 8.16% to 7.33% year-over-year, with delinquency rates improving by 34 basis points, indicating enhanced credit quality, while also repurchasing 3.5 million shares during the quarter to boost shareholder value.
See More
Investors Eye Value Appeal of BFH vs. FUTU
- Rating Comparison: Bread Financial Holdings (BFH) currently holds a Zacks Rank of 1 (Strong Buy), while Futu Holdings (FUTU) has a Zacks Rank of 5 (Strong Sell), indicating that BFH's earnings estimate revision activity is more favorable, leading to a more optimistic outlook from investors.
- Valuation Metrics Analysis: BFH's forward P/E ratio stands at 9.64, lower than FUTU's 10.80, and BFH's PEG ratio is 0.93 compared to FUTU's 1.13, suggesting that BFH is more attractive to value investors.
- Price-to-Book Ratio Comparison: BFH's P/B ratio of 1.24 is significantly lower than FUTU's 2.56, indicating that BFH's market value relative to its book value is more appealing, potentially attracting more value-focused investors.
- Improving Earnings Outlook: BFH's improving earnings outlook makes it stand out in the Zacks Rank model, and combined with the aforementioned valuation metrics, BFH is considered the superior value option at present, likely drawing more investor interest.
See More
Bread Financial Holdings Provides 2026 Performance Update
- Improved Loss Rate: As of May 31, 2026, Bread Financial's net principal loss rate decreased to 6.98% from 7.97% in 2025, indicating effective risk management that may enhance investor confidence moving forward.
- Declining Delinquency Rate: The delinquency rate fell to 5.24% as of May 31, 2026, down from 5.71% in 2025, suggesting positive progress in customer credit management and repayment capabilities, which could bolster future profitability.
- Loan Growth: Total credit card and other loans reached $18.363 billion as of May 31, 2026, a 2.6% increase from $17.702 billion in 2025, reflecting the company's success in expanding market demand and customer base.
- Enhanced Market Competitiveness: Bread Financial's ongoing innovation in providing personalized payment, lending, and saving solutions, combined with its 30 years of industry experience, strengthens its competitive position in the U.S. consumer financial services market, likely driving future business growth.
See More
High-Yield Savings Accounts Cut Rates Despite Fed Stance
- Rate Cuts Trend: Four high-yield savings accounts operated by Apple, Ally Financial, Capital One, and Marcus by Goldman Sachs have recently cut their rates, resulting in a 5 basis point drop in the peer median savings rate to 3.4%, indicating a lack of optimism in the market regarding future Fed rate cuts.
- Market Expectation Shift: Although the Fed has not cut rates since December, elevated inflation and a strong jobs report have pushed back expectations for further cuts this year, with some traders even pricing in potential rate hikes.
- Increased Deposit Competition: BTIG analysts suggest that despite the rate cuts, competition for deposits among online banks may intensify, especially as the Trump administration approves more bank applications, which could influence future deposit rate trends.
- CD Advantages: Currently, Bread Financial and LendingClub offer a 4% annual percentage yield, while other 1-year CDs under BTIG's coverage yield less than 4%, with CDs providing the advantage of locking in rates, although early withdrawals may incur penalties.
See More
Fed Rate Hike Expectations Impact Savings Yields
- Inflation Pressure Intensifies: According to AAA, the current national average gasoline price stands at $4.459 per gallon, up from $3.174 a year ago, reflecting the ongoing impact of the Iran war on fuel prices, which exacerbates consumer living costs.
- Rate Expectation Shifts: The CME Group's FedWatch indicates nearly a 50% likelihood of a Fed rate hike in December, causing savers to feel uneasy about future rate trends, which impacts yields on cash instruments.
- Rising Bank Deposit Rates: Bread Financial has raised its 1-year CD annual percentage yield to 4%, an increase of 15 basis points from the previous week, driven by loan growth and rate expectations, attracting more savers' attention.
- Short-Term Cash Investment Appeal: While current CD rates, such as Popular Direct's 12-month CD offering 4.11%, are attractive, analysts warn that these yields may not keep pace with inflation long-term and could adjust upon maturity, affecting investors' return expectations.
See More
Bread Financial Provides Performance Update
- Improved Loss Rate: As of April 2026, Bread Financial's net principal loss rate decreased to 7.09% from 7.85% in 2025, indicating effective risk management and enhancing investor confidence in the company's financial health.
- Declining Delinquency Rate: The delinquency rate fell to 5.34% as of April 2026, down from 5.73% in 2025, reflecting positive progress in credit quality management, which helps improve customer satisfaction and reduce potential losses.
- Loan Growth: Total credit card and other loans reached $18.123 billion as of April 2026, a 2.0% increase from $17.721 billion in 2025, showcasing the company's strong performance amid recovering market demand and further solidifying its market position.
- Expanded Customer Base: Bread Financial has continued to attract new customers over the past year, particularly in travel, entertainment, and health & beauty sectors, by offering personalized payment and lending solutions, thereby strengthening partnerships with well-known brands and driving sustainable business growth.
See More
Brooktree Capital Management Sells Shares of Bread Financial Holdings
- Share Reduction Details: Brooktree Capital Management sold 63,530 shares of Bread Financial Holdings in Q1 2026, with an estimated transaction value of $4.68 million, reducing its stake to 5.85% of the fund's AUM.
- Stock Performance: As of May 5, 2026, Bread Financial's shares were priced at $85.09, reflecting a 76.5% increase over the past year, significantly outperforming the S&P 500 by 48.03 percentage points, indicating strong market performance.
- Financial Health: The company reported a net income of $181 million in Q1, up $43 million year-over-year, with diluted earnings per share rising 50% to $4.15, showcasing sustained profitability improvements.
- Credit Metrics Improvement: Bread's net loss rate decreased from 8.16% to 7.33% year-over-year, with delinquency rates improving by 34 basis points, indicating enhanced credit quality, while also repurchasing 3.5 million shares during the quarter to boost shareholder value.
See More
