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Here's Why Affirm Holdings (AFRM) Gained But Lagged the Market Today
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Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $17.10, moving +1% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.2%. On the other hand, the Dow registered a gain of 1.58%, and the technology-centric Nasdaq increased by 1.16%.
The operator of digital commerce platform's stock has dropped by 20.4% in the past month, falling short of the Business Services sector's loss of 5.43% and the S&P 500's loss of 3.58%.
Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to go public on November 8, 2023. The company is predicted to post an EPS of $0.08, indicating a 109.3% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $444.94 million, reflecting a 23.04% rise from the equivalent quarter last year.
AFRM's full-year Zacks Consensus Estimates are calling for earnings of $0.28 per share and revenue of $1.95 billion. These results would represent year-over-year changes of +108.38% and +22.77%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Affirm Holdings is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, Affirm Holdings is at present trading with a Forward P/E ratio of 61.34. This denotes a premium relative to the industry's average Forward P/E of 14.65.
Also, we should mention that AFRM has a PEG ratio of 20.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AFRM's industry had an average PEG ratio of 1.36 as of yesterday's close.
The Business - Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Affirm Holdings (AFRM) Gained But Lagged the Market Today
Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $17.10, moving +1% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.2%. On the other hand, the Dow registered a gain of 1.58%, and the technology-centric Nasdaq increased by 1.16%.
The operator of digital commerce platform's stock has dropped by 20.4% in the past month, falling short of the Business Services sector's loss of 5.43% and the S&P 500's loss of 3.58%.
Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to go public on November 8, 2023. The company is predicted to post an EPS of $0.08, indicating a 109.3% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $444.94 million, reflecting a 23.04% rise from the equivalent quarter last year.
AFRM's full-year Zacks Consensus Estimates are calling for earnings of $0.28 per share and revenue of $1.95 billion. These results would represent year-over-year changes of +108.38% and +22.77%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Affirm Holdings is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, Affirm Holdings is at present trading with a Forward P/E ratio of 61.34. This denotes a premium relative to the industry's average Forward P/E of 14.65.
Also, we should mention that AFRM has a PEG ratio of 20.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AFRM's industry had an average PEG ratio of 1.36 as of yesterday's close.
The Business - Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.