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

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Afya (AFYA - Free Report) closed at $20.05 in the latest trading session, marking a +0.3% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.38% for the day. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.13%.

Coming into today, shares of the medical education company had lost 1.58% in the past month. In that same time, the Consumer Discretionary sector gained 2.53%, while the S&P 500 gained 4.74%.

The investment community will be paying close attention to the earnings performance of Afya in its upcoming release. The company is predicted to post an EPS of $0.34, indicating a 30.77% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $141.83 million, indicating a 27.8% upward movement from the same quarter last year.

It is also important to note the recent changes to analyst estimates for Afya. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Afya boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Afya is holding a Forward P/E ratio of 13.04. This valuation marks a discount compared to its industry's average Forward P/E of 14.98.

We can additionally observe that AFYA currently boasts a PEG ratio of 0.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Schools industry currently had an average PEG ratio of 1.03 as of yesterday's close.

The Schools industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 14, putting it in the top 6% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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