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Afya (AFYA) Rises Higher Than Market: Key Facts

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Afya (AFYA - Free Report) closed the latest trading day at $17.49, indicating a +1.92% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.9%.

Shares of the medical education company witnessed a gain of 15.95% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 3.54% and the S&P 500's gain of 1.45%.

The investment community will be closely monitoring the performance of Afya in its forthcoming earnings report. The company is scheduled to release its earnings on November 13, 2023. It is anticipated that the company will report an EPS of $0.31, marking a 29.17% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $143.68 million, showing a 29.63% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.25 per share and a revenue of $573.08 million, representing changes of +12.61% and +26.76%, respectively, from the prior year.

Any recent changes to analyst estimates for Afya should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Afya is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Afya is at present trading with a Forward P/E ratio of 13.73. This represents a discount compared to its industry's average Forward P/E of 19.45.

One should further note that AFYA currently holds a PEG ratio of 0.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AFYA's industry had an average PEG ratio of 0.85 as of yesterday's close.

The Schools industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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