In the latest trading session, Affirm Holdings (AFRM) closed at $69.19, marking a +1.2% move from the previous day. This change outpaced the S&P 500's 0.83% gain on the day. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.
The stock of operator of digital commerce platform has risen by 25.84% in the past month, leading the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 4.99%.
Market participants will be closely following the financial results of Affirm Holdings in its upcoming release. The company is forecasted to report an EPS of $0.09, showcasing a 164.29% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $833.89 million, up 26.5% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.03 per share and a revenue of $3.18 billion, signifying shifts of +101.8% and 0%, respectively, from the last year.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Affirm Holdings holds a Zacks Rank of #3 (Hold).
Digging into valuation, Affirm Holdings currently has a Forward P/E ratio of 97.21. This expresses a premium compared to the average Forward P/E of 28.74 of its industry.
It's also important to note that AFRM currently trades at a PEG ratio of 2.48. 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 2.22.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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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