Affirm Holdings (AFRM) ended the recent trading session at $82.34, demonstrating a +1.91% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.62%. On the other hand, the Dow registered a gain of 0.99%, and the technology-centric Nasdaq increased by 0.65%.
Coming into today, shares of the operator of digital commerce platform had gained 18.63% in the past month. In that same time, the Computer and Technology sector lost 1.47%, while the S&P 500 gained 0.59%.
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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 21.99% from the year-ago period.
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.
Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 0.63% lower. Affirm Holdings is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Affirm Holdings's current valuation metrics, including its Forward P/E ratio of 81.62. This represents a premium compared to its industry average Forward P/E of 24.53.
One should further note that AFRM currently holds a PEG ratio of 3.67. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.52.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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