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Afya (AFYA) Gains As Market Dips: What You Should Know

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In the latest market close, Afya (AFYA - Free Report) reached $15.48, with a +0.13% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.85%. Elsewhere, the Dow saw a downswing of 0.75%, while the tech-heavy Nasdaq depreciated by 0.96%.

The medical education company's stock has dropped by 3.31% in the past month, exceeding the Consumer Discretionary sector's loss of 5.75% and lagging the S&P 500's loss of 3.02%.

The upcoming earnings release of Afya will be of great interest to investors. The company's earnings report is expected on November 13, 2023. The company's upcoming EPS is projected at $0.31, signifying a 29.17% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $143.68 million, up 29.63% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.25 per share and revenue of $573.08 million, indicating changes of +12.61% and +26.76%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Afya. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Afya is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Afya has a Forward P/E ratio of 12.37 right now. This expresses a discount compared to the average Forward P/E of 19.3 of its industry.

Investors should also note that AFYA has a PEG ratio of 0.67 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Schools industry had an average PEG ratio of 0.74 as trading concluded yesterday.

The Schools industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 45% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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