In the latest trading session, Affirm Holdings (AFRM) closed at $67.25, marking a -2.58% move from the previous day. This change lagged the S&P 500's 1.07% loss on the day. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 1.69%.
The stock of operator of digital commerce platform has fallen by 5.67% in the past month, lagging the Computer and Technology sector's gain of 1.6% and the S&P 500's gain of 0.94%.
The upcoming earnings release of Affirm Holdings will be of great interest to investors. The company is expected to report EPS of $0.28, up 21.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 21.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1 per share and a revenue of $4.06 billion, demonstrating changes of +566.67% and +25.99%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.25% fall in the Zacks Consensus EPS estimate. Currently, Affirm Holdings is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Affirm Holdings is currently trading at a Forward P/E ratio of 69.29. This expresses a premium compared to the average Forward P/E of 29.42 of its industry.
Also, we should mention that AFRM has a PEG ratio of 3.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.98.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 24% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
