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Why Afya (AFYA) Dipped More Than Broader Market Today

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Afya (AFYA - Free Report) closed at $20.44 in the latest trading session, marking a -0.68% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.12% for the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.

The the stock of medical education company has risen by 2.49% in the past month, leading the Consumer Discretionary sector's gain of 0.97% and undershooting the S&P 500's gain of 4.83%.

The investment community will be closely monitoring the performance of Afya in its forthcoming earnings report. The company is expected to report EPS of $0.34, up 30.77% from the prior-year quarter. 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.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Afya. These recent revisions tend to reflect the evolving nature of short-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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Afya is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Afya has a Forward P/E ratio of 13.42 right now. This signifies a discount in comparison to the average Forward P/E of 18.58 for its industry.

We can additionally observe that AFYA currently boasts a PEG ratio of 0.76. 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 1.18 as of yesterday's close.

The Schools industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 15, finds itself in the top 6% echelons 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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