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Afya (AFYA) Advances While Market Declines: Some Information for Investors

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The latest trading session saw Afya (AFYA - Free Report) ending at $21.02, denoting a +0.57% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Prior to today's trading, shares of the medical education company had lost 0.99% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.76% and the S&P 500's gain of 5.78% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Afya in its upcoming earnings disclosure. In that report, analysts expect Afya to post earnings of $0.34 per share. This would mark year-over-year growth of 30.77%. In the meantime, our current consensus estimate forecasts the revenue to be $141.83 million, indicating a 27.8% growth compared to the corresponding quarter of the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Afya. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Afya is currently a Zacks Rank #3 (Hold).

Digging into valuation, Afya currently has a Forward P/E ratio of 13.6. This indicates a discount in contrast to its industry's Forward P/E of 16.49.

We can additionally observe that AFYA currently boasts a PEG ratio of 0.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Schools industry had an average PEG ratio of 1.1.

The Schools industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 25, positioning it in the top 10% of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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