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AvidXchange Holdings, Inc. (AVDX) Outperforms Broader Market: What You Need to Know

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AvidXchange Holdings, Inc. (AVDX - Free Report) closed the latest trading day at $12.91, indicating a +1.25% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.39%.

Shares of the company have appreciated by 3.91% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.42% and the S&P 500's gain of 2.97%.

Analysts and investors alike will be keeping a close eye on the performance of AvidXchange Holdings, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.03, marking a 250% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $101.76 million, reflecting a 17.2% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $444.13 million, which would represent changes of +157.14% and +16.66%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AvidXchange Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 56.25% higher. As of now, AvidXchange Holdings, Inc. holds a Zacks Rank of #3 (Hold).

Investors should also note AvidXchange Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 69.86. This represents a premium compared to its industry's average Forward P/E of 30.15.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.

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


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