Bread Financial - AI Stock Analysis

Analysis generated September 4, 2025

Bread Financial is a notable player in the financial services industry. Specializing in providing consumer financial products, Bread Financial has built a reputation for its credit card offerings, digital payment solutions, and comprehensive financial services. The company has been responsive to the evolving financial landscape, leveraging technology to cater to customer needs and enhancing user experience.

Fundamental Analysis

The revenue for Bread Financial in the last quarter was $1.15 billion. This reflects a decrease of 4.10% compared to the previous quarter and a decrease of 2.88% compared to the same quarter last year, indicating potential concerns about revenue generation.

However, the net income tells a more positive story. For the last quarter, net income was $139 million, showcasing an increase of 0.72% compared to the previous quarter and a year-over-year growth of 4.51%. This suggests that despite declining revenues, the company is managing its expenditures effectively to maintain profitability.

The EBITDA reveals some worrying signs. The last quarter’s EBITDA was $174 million, a decrease of 20.18% from the previous quarter and a decrease of 14.29% compared to the same quarter last year. This indicates potential challenges in maintaining operational efficiency.

The Price to Earnings (P/E) ratio currently stands at 11.01. This relatively low P/E ratio can indicate that the stock is undervalued, potentially presenting a buying opportunity for investors.

Technical Analysis

The current stock price of Bread Financial is $67.10, reflecting a 13.33% increase from a month ago and a 20.06% increase from a year ago. These numbers suggest a positive trend in both the short and long term.

The Simple Moving Average (SMA10) is 65.91, which is slightly higher than the previous SMA10 of 65.49. This indicates a potential upward trend in price movement.

With a Relative Strength Index (RSI) of 38.8, the stock is in a neutral condition. The neutral RSI, coupled with rising SMAs and stock prices, signals a generally positive trend but advises caution against over-optimism.

Alternative Data Analysis

From a labor market perspective, Bread Financial has 35 open positions, a stable metric over recent months. This indicates a balanced employment situation, contributing to operational stability.

Regarding customer acquisition and engagement, Bread Financial’s website has an estimated 1.5 million visitors, although this is down by 7% recently. The lack of users downloading the mobile app daily points to potential challenges in mobile engagement. However, the company’s social media presence shows positive signs with a 32% increase in Instagram followers, reaching 7,300 followers, indicating growing interest in the brand.

Additionally, Bread Financial has an AltIndex AI score of 70, which is a positive buy signal indicating overall confidence in the stock based on combined fundamental, technical, and alternative data.

Conclusion and Recommendation

Bread Financial presents a mixed but cautiously optimistic investment opportunity. The decrease in revenue and EBITDA raises concerns, but positive net income and low P/E ratio offer attractive aspects for potential investors. The positive trends in stock price and SMA, coupled with the neutral RSI, suggest upward momentum, though vigilance is advised. Additionally, stable job postings, growing social media presence, and a favorable AltIndex AI score bolster confidence.

In conclusion, based on the comprehensive analysis of fundamental performance, stock trends, and alternative data indicators, Bread Financial may be a suitable stock for investor portfolios, particularly for those seeking undervalued opportunities with growth potential. However, it's recommended to continuously monitor performance metrics and market conditions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.