Affirm Holdings (AFRM) closed the most recent trading day at $77.46, moving +2.94% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.08%.
The operator of digital commerce platform's stock has dropped by 11.34% in the past month, falling short of the Computer and Technology sector's gain of 7.19% and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Affirm Holdings in its upcoming release. The company's upcoming EPS is projected at $0.1, signifying a 132.26% increase 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.
AFRM's full-year Zacks Consensus Estimates are calling for earnings of $0.84 per share and revenue of $3.99 billion. These results would represent year-over-year changes of +460% and +23.76%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, the Zacks Consensus EPS estimate has moved 1.89% lower. Affirm Holdings presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Affirm Holdings is currently being traded at a Forward P/E ratio of 89.18. This indicates a premium in contrast to its industry's Forward P/E of 30.
We can additionally observe that AFRM currently boasts a PEG ratio of 4.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had 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 91, positioning it in the top 37% 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.
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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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