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Afya (AFYA) Laps the Stock Market: Here's Why

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Afya (AFYA - Free Report) closed the latest trading day at $20.74, indicating a +1.52% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 1.12%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.54%.

Coming into today, shares of the medical education company had lost 2.81% in the past month. In that same time, the Consumer Discretionary sector gained 1.03%, while the S&P 500 gained 2.06%.

Investors will be eagerly watching for the performance of Afya in its upcoming earnings disclosure. On that day, Afya is projected to report earnings of $0.34 per share, which would represent 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.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Afya. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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, the Zacks Consensus EPS estimate remained stagnant. Currently, Afya is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Afya is presently trading at a Forward P/E ratio of 13.32. This expresses a discount compared to the average Forward P/E of 18.35 of its industry.

Investors should also note that AFYA has a PEG ratio of 0.76 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Schools was holding an average PEG ratio of 1.16 at yesterday's closing price.

The Schools industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

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