In the latest trading session, Affirm Holdings (AFRM) closed at $75.64, marking a -3.73% move from the previous day. This move lagged the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.57%.
The operator of digital commerce platform's shares have seen an increase of 17.46% over the last month, surpassing the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 4.22%.
The investment community will be closely monitoring the performance of Affirm Holdings in its forthcoming earnings report. The company is expected to report EPS of $0.28, up 21.74% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.06 billion, indicating a 21.99% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.99 per share and revenue of $4.06 billion, which would represent changes of +560% and +25.99%, respectively, from the prior year.
Any recent changes to analyst estimates for Affirm Holdings should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.63% lower. At present, Affirm Holdings boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Affirm Holdings is currently trading at a Forward P/E ratio of 79.36. Its industry sports an average Forward P/E of 29.41, so one might conclude that Affirm Holdings is trading at a premium comparatively.
Meanwhile, AFRM's PEG ratio is currently 3.57. 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 of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.85.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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