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Affirm Holdings (AFRM) Outpaces Stock Market Gains: What You Should Know

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Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $46.61, moving +0.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Heading into today, shares of the operator of digital commerce platform had gained 18.36% over the past month, outpacing the Business Services sector's gain of 3.05% and the S&P 500's gain of 3.75% in that time.

Investors will be hoping for strength from Affirm Holdings as it approaches its next earnings release. In that report, analysts expect Affirm Holdings to post earnings of -$0.44 per share. This would mark year-over-year growth of 38.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $331.64 million, up 43.77% from the year-ago period.

AFRM's full-year Zacks Consensus Estimates are calling for earnings of -$2.78 per share and revenue of $1.32 billion. These results would represent year-over-year changes of -9.45% and +51.65%, respectively.

Any recent changes to analyst estimates for Affirm Holdings should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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, the Zacks Consensus EPS estimate has moved 0.89% higher. Affirm Holdings currently has a Zacks Rank of #4 (Sell).

The Business - Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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