In the latest close session, Affirm Holdings (AFRM) was up +1.98% at $69.07. This move outpaced the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the operator of digital commerce platform had gained 11.03% outpaced the Computer and Technology sector's gain of 5.6% and the S&P 500's gain of 3.85%.
Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.09, marking a 164.29% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $833.89 million, up 26.5% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.03 per share and revenue of $3.18 billion, indicating changes of +101.8% and 0%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Affirm Holdings should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Affirm Holdings boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Affirm Holdings currently has a Forward P/E ratio of 96.3. This represents a premium compared to its industry average Forward P/E of 28.96.
It's also important to note that AFRM currently trades at a PEG ratio of 2.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.22 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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