Affirm Holdings, Inc. (AFRM - Free Report) recently released findings from its survey of 2,000 Canadians, signaling that they are more confident about their finances compared with the economy. While many reports indicate that Canadians might cut their expenses, this survey highlights that the majority (82%) of people are planning to make a major purchase in the near future.
The report highlights that 94% and 90% of Gen Z and Millennials plan to make a major purchase in the coming months compared with 82% and 72% of Gen X and Baby Boomers, respectively. High prices were most often cited as a challenge by Canadians. This survey highlights an important aspect, which is the rising need for flexible payment options.
As demand for flexible payment options related to major purchases like travel, car among others is rapidly increasing, AFRM’s top line should benefit as a result. AFRM expects fiscal 2024 revenues, as a percentage of GMV, to expand 65 bps from the fiscal 2023 level.
The majority of consumers mentioned an uncertain economy, high prices, and not having enough money as top challenges. 58% of customers expect their payment options to be more transparent, and nearly 50% demand improved flexibility. AFRM’s pay-over-time options are highly transparent with no hidden fees, which should help it win and retain customers.
Affirm often resorts to partnerships to grow its network of more than 279,000 merchants. The massive network includes merchants in Canada like Apple, Samsung, Browns Shoes, Amazon and CheapOair. Increased active merchants, gross merchandise volume and transactions should aid AFRM’s results.
Affirm would benefit from the rising demand for BNPL services if it maintains a consistent merchant discount rate, introduces new offerings to drive organic growth and captures more market share with partnerships. However, high competition from legacy brands and new entrants should be a concern.
Shares of Affirm have surged 92.2% in the past six months compared with the industry’s 8.3% growth. AFRM currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the Business Services space are SPX Technologies, Inc. (SPXC - Free Report) , CRA International, Inc. (CRAI - Free Report) and Barrett Business Services, Inc. (BBSI - Free Report) . While SPX Technologies sports a Zacks Rank #1 (Strong Buy), CRA International and Barrett Business Services carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of SPX Technologies outpaced estimates in three of the last four quarters and matched the mark once, the average beat being 23.2%. The Zacks Consensus Estimate for SPXC’s 2024 earnings suggests an improvement of 16.7% from the 2023 reported figure. The consensus mark for revenues suggests growth of 13.1% from the 2023 figure. The consensus mark for SPXC’s 2024 earnings has moved 5.5% north in the past 60 days.
CRA International’s earnings outpaced estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 8.1%. The Zacks Consensus Estimate for CRAI’s 2024 earnings suggests an improvement of 7.1% from the 2023 reported figure. The consensus mark for revenues suggests growth of 4.8% from the 2023 figure. The consensus mark for CRAI’s 2024 earnings has moved 1.9% north in the past seven days.
The bottom line of Barrett Business Services outpaced estimates in each of the last four quarters, the average beat being 77.7%. The Zacks Consensus Estimate for BBSI’s 2024 earnings suggests an improvement of 5.3% from the 2023 reported figure. The same for revenues suggests growth of 6.8% from the 2023 number. The consensus mark for BBSI’s 2024 earnings has moved 1.4% north in the past 60 days.
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Affirm Holdings, Inc. (AFRM - Free Report) recently released findings from its survey of 2,000 Canadians, signaling that they are more confident about their finances compared with the economy. While many reports indicate that Canadians might cut their expenses, this survey highlights that the majority (82%) of people are planning to make a major purchase in the near future.
The report highlights that 94% and 90% of Gen Z and Millennials plan to make a major purchase in the coming months compared with 82% and 72% of Gen X and Baby Boomers, respectively. High prices were most often cited as a challenge by Canadians. This survey highlights an important aspect, which is the rising need for flexible payment options.
As demand for flexible payment options related to major purchases like travel, car among others is rapidly increasing, AFRM’s top line should benefit as a result. AFRM expects fiscal 2024 revenues, as a percentage of GMV, to expand 65 bps from the fiscal 2023 level.
The majority of consumers mentioned an uncertain economy, high prices, and not having enough money as top challenges. 58% of customers expect their payment options to be more transparent, and nearly 50% demand improved flexibility. AFRM’s pay-over-time options are highly transparent with no hidden fees, which should help it win and retain customers.
Affirm often resorts to partnerships to grow its network of more than 279,000 merchants. The massive network includes merchants in Canada like Apple, Samsung, Browns Shoes, Amazon and CheapOair. Increased active merchants, gross merchandise volume and transactions should aid AFRM’s results.
Affirm would benefit from the rising demand for BNPL services if it maintains a consistent merchant discount rate, introduces new offerings to drive organic growth and captures more market share with partnerships. However, high competition from legacy brands and new entrants should be a concern.
Shares of Affirm have surged 92.2% in the past six months compared with the industry’s 8.3% growth. AFRM currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the Business Services space are SPX Technologies, Inc. (SPXC - Free Report) , CRA International, Inc. (CRAI - Free Report) and Barrett Business Services, Inc. (BBSI - Free Report) . While SPX Technologies sports a Zacks Rank #1 (Strong Buy), CRA International and Barrett Business Services carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of SPX Technologies outpaced estimates in three of the last four quarters and matched the mark once, the average beat being 23.2%. The Zacks Consensus Estimate for SPXC’s 2024 earnings suggests an improvement of 16.7% from the 2023 reported figure. The consensus mark for revenues suggests growth of 13.1% from the 2023 figure. The consensus mark for SPXC’s 2024 earnings has moved 5.5% north in the past 60 days.
CRA International’s earnings outpaced estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 8.1%. The Zacks Consensus Estimate for CRAI’s 2024 earnings suggests an improvement of 7.1% from the 2023 reported figure. The consensus mark for revenues suggests growth of 4.8% from the 2023 figure. The consensus mark for CRAI’s 2024 earnings has moved 1.9% north in the past seven days.
The bottom line of Barrett Business Services outpaced estimates in each of the last four quarters, the average beat being 77.7%. The Zacks Consensus Estimate for BBSI’s 2024 earnings suggests an improvement of 5.3% from the 2023 reported figure. The same for revenues suggests growth of 6.8% from the 2023 number. The consensus mark for BBSI’s 2024 earnings has moved 1.4% north in the past 60 days.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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