Affirm Holdings (AFRM) ended the recent trading session at $92.18, demonstrating a +2.52% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.49%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.72%.
The operator of digital commerce platform's stock has climbed by 20.7% in the past month, exceeding the Computer and Technology sector's gain of 6.81% and the S&P 500's gain of 2.99%.
Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.1, showcasing a 132.26% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $884.86 million, indicating a 26.68% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.86 per share and a revenue of $3.98 billion, indicating changes of +473.33% and +23.39%, respectively, from the former year.
Any recent changes to analyst estimates for Affirm Holdings should also be noted by investors. 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.
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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 13.82% higher. Currently, Affirm Holdings is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Affirm Holdings currently has a Forward P/E ratio of 104.55. This indicates a premium in contrast to its industry's Forward P/E of 32.6.
It's also important to note that AFRM currently trades at a PEG ratio of 5.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 2.33 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 64, placing it within the top 26% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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