In the latest close session, Affirm Holdings (AFRM) was down 1.93% at $71.43. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.28%.
Shares of the operator of digital commerce platform witnessed a loss of 4.15% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.43%, and the S&P 500's gain of 0.6%.
The upcoming earnings release of Affirm Holdings will be of great interest to investors. The company's earnings report is expected on February 5, 2026. The company is predicted to post an EPS of $0.28, indicating a 21.74% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.06 billion, reflecting a 21.99% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.99 per share and revenue of $4.05 billion. These totals would mark changes of +560% and +25.72%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, there's been a 0.25% rise in the Zacks Consensus EPS estimate. 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 73.39. Its industry sports an average Forward P/E of 23.85, so one might conclude that Affirm Holdings is trading at a premium comparatively.
We can additionally observe that AFRM currently boasts a PEG ratio of 3.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.4.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 29% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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