In the latest trading session, Affirm Holdings (AFRM) closed at $62.80, marking a -3.92% move from the previous day. This change lagged the S&P 500's 0.13% loss on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.72%.
Prior to today's trading, shares of the operator of digital commerce platform had lost 12.19% lagged the Computer and Technology sector's gain of 1.88% and the S&P 500's gain of 0.78%.
The investment community will be closely monitoring the performance of Affirm Holdings in its forthcoming earnings report. The company is scheduled to release its earnings on February 5, 2026. The company's earnings per share (EPS) are projected to be $0.28, reflecting a 21.74% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 21.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.99 per share and revenue of $4.05 billion, which would represent changes of +560% and +25.72%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.25% rise in the Zacks Consensus EPS estimate. Affirm Holdings currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Affirm Holdings is currently exchanging hands at a Forward P/E ratio of 65.85. This valuation marks a premium compared to its industry average Forward P/E of 23.25.
It is also worth noting that AFRM currently has a PEG ratio of 2.96. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AFRM's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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