Affirm Holdings (AFRM) ended the recent trading session at $78.00, demonstrating a -4.33% change from the preceding day's closing price. This change lagged the S&P 500's 0.5% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.5%.
The operator of digital commerce platform's stock has climbed by 5.08% in the past month, falling short of the Computer and Technology sector's gain of 8.21% and outpacing the S&P 500's gain of 2.74%.
The investment community will be closely monitoring the performance of Affirm Holdings in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.1, reflecting a 132.26% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $884.86 million, up 26.68% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.86 per share and a revenue of $3.98 billion, demonstrating changes of +473.33% and +23.39%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 13.82% rise in the Zacks Consensus EPS estimate. Affirm Holdings is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Affirm Holdings has a Forward P/E ratio of 94.8 right now. This valuation marks a premium compared to its industry average Forward P/E of 31.31.
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. The Internet - Software industry currently had an average PEG ratio of 2.28 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% 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.
You can find more information on all of these metrics, and much 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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