We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Affirm Holdings, a Zacks Rank #1 (Strong Buy), is a financial technology company specializing in payment solutions that provide consumers with flexible, transparent installment loans. By partnering with a diverse range of merchants, Affirm enables customers to pay for purchases over time.
The stock is displaying relative strength and has been making a series of 52-week highs. The price movement is a sign of strength as we head further into the new year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
Affirm is part of the Zacks Financial Transaction Services industry group, which currently ranks in the top 33% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has so far this year:
Image Source: Zacks Investment Research
Note the favorable metrics for this industry group below:
Image Source: Zacks Investment Research
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
Company Description
Affirm Holdings operates a payment network in the United States, Canada, and internationally. Its platform includes point-of-sale payment solutions for consumers and merchants along with a consumer-focused app.
The company boasts over 337,000 active merchants covering small businesses, large enterprises, direct-to-consumer brands, and brick-and-mortar stores. Its tools help merchants to boost sales and enhance customer engagement.
Affirm recently renewed a multi-year partnership with Shopify, a global provider of internet infrastructure for commerce. The partnership helps cement Affirm’s position as the exclusive buy now, pay later provider for Shop Pay Installments in the US and Canada, with plans to enter the United Kingdom and other markets worldwide.
Earnings Trends and Future Estimates
Affirm (AFRM - Free Report) has built up an impressive reporting history, surpassing earnings estimates in seven of the past eight quarters. The company delivered a trailing four-quarter average surprise of 84.1%.
Earlier in February, Affirm reported fiscal second-quarter earnings of $0.23 per share, a 215% surprise over the -$0.20/share consensus estimate. Revenues of $866.38 million exceeded projections by 7.7%. Higher transactions, robust repeat customer engagement and a successful holiday shopping season also boosted performance.
Analysts are bullish on the stock and have raised current-quarter earnings estimates by 30.77% in the past 60 days. The fiscal Q3 Zacks Consensus Estimate now stands at -$0.09 per share, reflecting growth of 79.1% relative to the year-ago period.
Image Source: Zacks Investment Research
Let’s Get Technical
This market leader has seen its stock advance more than 80% over the past year. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Image Source: StockCharts
Notice how the 200-day (red line) moving average is sloping up. The stock has been making a series of higher highs throughout the past year. With both strong fundamental and technical indicators, AFRM stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Affirm has recently witnessed positive revisions. As long as this trend remains intact (and AFRM continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and history of earnings beats, it’s not difficult to see why AFRM stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Affirm has achieved strong revenue growth through diverse income streams including merchant network fees, interest from loans, and virtual card revenues. Advanced machine learning and predictive models power the company’s cloud-based, data-driven platform.
Recent positive earnings estimate revisions should also serve to create a ‘floor’ in terms of any sudden or unexpected downside moves. If you haven’t already done so, be sure to put AFRM on your shortlist.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bull of the Day: Affirm Holdings (AFRM)
Affirm Holdings, a Zacks Rank #1 (Strong Buy), is a financial technology company specializing in payment solutions that provide consumers with flexible, transparent installment loans. By partnering with a diverse range of merchants, Affirm enables customers to pay for purchases over time.
The stock is displaying relative strength and has been making a series of 52-week highs. The price movement is a sign of strength as we head further into the new year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
Affirm is part of the Zacks Financial Transaction Services industry group, which currently ranks in the top 33% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has so far this year:
Image Source: Zacks Investment Research
Note the favorable metrics for this industry group below:
Image Source: Zacks Investment Research
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
Company Description
Affirm Holdings operates a payment network in the United States, Canada, and internationally. Its platform includes point-of-sale payment solutions for consumers and merchants along with a consumer-focused app.
The company boasts over 337,000 active merchants covering small businesses, large enterprises, direct-to-consumer brands, and brick-and-mortar stores. Its tools help merchants to boost sales and enhance customer engagement.
Affirm recently renewed a multi-year partnership with Shopify, a global provider of internet infrastructure for commerce. The partnership helps cement Affirm’s position as the exclusive buy now, pay later provider for Shop Pay Installments in the US and Canada, with plans to enter the United Kingdom and other markets worldwide.
Earnings Trends and Future Estimates
Affirm (AFRM - Free Report) has built up an impressive reporting history, surpassing earnings estimates in seven of the past eight quarters. The company delivered a trailing four-quarter average surprise of 84.1%.
Earlier in February, Affirm reported fiscal second-quarter earnings of $0.23 per share, a 215% surprise over the -$0.20/share consensus estimate. Revenues of $866.38 million exceeded projections by 7.7%. Higher transactions, robust repeat customer engagement and a successful holiday shopping season also boosted performance.
Analysts are bullish on the stock and have raised current-quarter earnings estimates by 30.77% in the past 60 days. The fiscal Q3 Zacks Consensus Estimate now stands at -$0.09 per share, reflecting growth of 79.1% relative to the year-ago period.
Image Source: Zacks Investment Research
Let’s Get Technical
This market leader has seen its stock advance more than 80% over the past year. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Image Source: StockCharts
Notice how the 200-day (red line) moving average is sloping up. The stock has been making a series of higher highs throughout the past year. With both strong fundamental and technical indicators, AFRM stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Affirm has recently witnessed positive revisions. As long as this trend remains intact (and AFRM continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and history of earnings beats, it’s not difficult to see why AFRM stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Affirm has achieved strong revenue growth through diverse income streams including merchant network fees, interest from loans, and virtual card revenues. Advanced machine learning and predictive models power the company’s cloud-based, data-driven platform.
Recent positive earnings estimate revisions should also serve to create a ‘floor’ in terms of any sudden or unexpected downside moves. If you haven’t already done so, be sure to put AFRM on your shortlist.