Affirm Holdings (AFRM) closed at $78.96 in the latest trading session, marking a +2.17% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, added 0.35%.
The stock of operator of digital commerce platform has risen by 11.89% in the past month, leading the Computer and Technology sector's gain of 3.95% and the S&P 500's gain of 1.21%.
Market participants will be closely following the financial results of Affirm Holdings in its upcoming release. The company plans to announce its earnings on August 28, 2025. The company is predicted to post an EPS of $0.11, indicating a 178.57% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $839.88 million, up 27.41% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.05 per share and revenue of $3.19 billion, which would represent changes of +102.99% and 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 7.74% higher within the past month. Affirm Holdings is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Affirm Holdings is currently exchanging hands at a Forward P/E ratio of 101.98. For comparison, its industry has an average Forward P/E of 28.8, which means Affirm Holdings is trading at a premium to the group.
It is also worth noting that AFRM currently has a PEG ratio of 2.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 2.18 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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