Affirm Holdings (AFRM) ended the recent trading session at $71.10, demonstrating a -4.9% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 2.06%. Elsewhere, the Dow saw a downswing of 1.76%, while the tech-heavy Nasdaq depreciated by 2.39%.
Shares of the operator of digital commerce platform have depreciated by 4.85% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.71%, and the S&P 500's gain of 1.63%.
Investors will be eagerly watching for the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2026. It is anticipated that the company will report an EPS of $0.28, marking a 21.74% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.06 billion, showing a 21.99% escalation compared to the year-ago quarter.
AFRM's full-year Zacks Consensus Estimates are calling for earnings of $0.99 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +560% and +25.72%, respectively.
Investors might also notice recent changes to analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.38% upward. Affirm Holdings presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Affirm Holdings is currently exchanging hands at a Forward P/E ratio of 75.23. This valuation marks a premium compared to its industry average Forward P/E of 23.4.
Meanwhile, AFRM's PEG ratio is currently 3.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AFRM's industry had an average PEG ratio of 1.41 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.
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
