In the latest close session, Affirm Holdings (AFRM) was up +2.05% at $83.08. This change outpaced the S&P 500's 0.05% loss on the day. Elsewhere, the Dow saw a downswing of 0.59%, while the tech-heavy Nasdaq appreciated by 0.45%.
The operator of digital commerce platform's stock has climbed by 5.7% in the past month, exceeding the Computer and Technology sector's gain of 5.42% and the S&P 500's gain of 3.44%.
Market participants will be closely following the financial results of Affirm Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.1, marking a 132.26% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $884.86 million, indicating a 26.68% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.86 per share and a revenue of $3.97 billion, representing changes of +473.33% and +23.16%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has moved 13.49% higher. Right now, Affirm Holdings possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Affirm Holdings is at present trading with a Forward P/E ratio of 94.66. This represents a premium compared to its industry average Forward P/E of 32.
We can additionally observe that AFRM currently boasts a PEG ratio of 5.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.25.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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