In the latest close session, Affirm Holdings (AFRM) was down 1.87% at $74.43. This change lagged the S&P 500's daily loss of 0.74%. Elsewhere, the Dow lost 0.63%, while the tech-heavy Nasdaq lost 0.76%.
Heading into today, shares of the operator of digital commerce platform had gained 13.18% over the past month, outpacing the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.28, indicating a 21.74% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.06 billion, indicating a 21.99% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.99 per share and a revenue of $4.06 billion, signifying shifts of +560% and +25.99%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.63% lower. Affirm Holdings is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Affirm Holdings has a Forward P/E ratio of 76.62 right now. This represents a premium compared to its industry average Forward P/E of 28.86.
We can also see that AFRM currently has a PEG ratio of 3.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.78.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 51, finds itself in the top 21% echelons of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many 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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