In the latest trading session, Affirm Holdings (AFRM) closed at $76.39, marking a -6.61% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.26%.
The operator of digital commerce platform's stock has climbed by 21.64% in the past month, exceeding the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 1.89%.
The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. On that day, Affirm Holdings is projected to report earnings of $0.28 per share, which would represent year-over-year growth of 21.74%. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 21.99% from the year-ago period.
AFRM's full-year Zacks Consensus Estimates are calling for earnings of $0.99 per share and revenue of $4.06 billion. These results would represent year-over-year changes of +560% and +25.99%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.63% lower. At present, Affirm Holdings boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Affirm Holdings is currently exchanging hands at a Forward P/E ratio of 82.63. For comparison, its industry has an average Forward P/E of 24.48, which means Affirm Holdings is trading at a premium to the group.
Meanwhile, AFRM's PEG ratio is currently 3.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.49 as of yesterday's close.
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 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
