In the latest trading session, Affirm Holdings (AFRM) closed at $74.83, marking a -3.36% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, lost 0.28%.
The stock of operator of digital commerce platform has fallen by 13.64% in the past month, lagging the Computer and Technology sector's gain of 10.49% and the S&P 500's gain of 4.83%.
The upcoming earnings release of Affirm Holdings will be of great interest to investors. In that report, analysts expect Affirm Holdings to post earnings of $0.1 per share. This would mark year-over-year growth of 132.26%. Meanwhile, the latest consensus estimate predicts the revenue to be $884.86 million, indicating a 26.68% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.86 per share and a revenue of $3.98 billion, signifying shifts of +473.33% and +23.39%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.39% higher. As of now, Affirm Holdings holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Affirm Holdings has a Forward P/E ratio of 90.04 right now. Its industry sports an average Forward P/E of 29.87, so one might conclude that Affirm Holdings is trading at a premium comparatively.
One should further note that AFRM currently holds a PEG ratio of 5.03. 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. AFRM's industry had an average PEG ratio of 2.25 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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