Affirm Holdings (AFRM) ended the recent trading session at $65.43, demonstrating a -1.98% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.06%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Heading into today, shares of the operator of digital commerce platform had gained 7.33% over the past month, lagging the Computer and Technology sector's gain of 9.6% and outpacing the S&P 500's gain of 5.88%.
The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. The company's upcoming EPS is projected at $0.1, signifying a 171.43% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $838.52 million, up 27.21% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.03 per share and a revenue of $3.18 billion, representing changes of +101.8% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 5.57% rise in the Zacks Consensus EPS estimate. Affirm Holdings currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Affirm Holdings is at present trading with a Forward P/E ratio of 89.9. This indicates a premium in contrast to its industry's Forward P/E of 29.18.
Investors should also note that AFRM has a PEG ratio of 2.52 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.18.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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