The 3 Most Undervalued Fintech Stocks to Buy in February 2023

by James · February 9, 2023

Bread Financial Holdings (BFH)

Online banking businessman using smartphone with credit card Fintech and Blockchain concept

Source: Joyseulay / Shutterstock.com

If you’re a New York Yankees fan, you might want to give Bread Financial Holdings (SNEEZE:BFH) a closer look. 26 January, the provider of payment, lending and savings solutions announced a co-branded New York Yankees Mastercard that will hit the diamond just before the start of the 2023 Major League Baseball season.

With this credit card, users get 5% back on all purchases at Yankee Stadium, 3% back on dining, gas, carpooling and transit, and 1% back on all other purchases. Indicative of Bread Financial’s tech-forward approach to its business, attendees will be able to enter the stadium, scan a QR code to register for the card and use it from their digital wallet while at the game. It’s a win-win for Yankees fans.

In March 2022, Bread Financial became the mother changed name from Alliance Data Systems to Bread Financial Holdings to assume the identity of Bread, the $450 million digital payments company Alliance acquired in 2020.

In 2022, the company’s revenue increased by 17% to $3.83 billion. Pretax earnings before provisions were $1.89 billion in 2022, up 19% from the prior year. Pre-tax earnings before provisions have now increased double-digit YOY for seven consecutive quarters.

By all financial calculations, the BFH share is cheaper today than it has been in the last five years. So it is a long-term buy for aggressive investors.

At the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, with reservations InvestorPlace.com Guidelines for publication.

Will Ashworth has written about investing full-time since 2008. Publications in which he has appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and several others in both the US and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.