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Afya (AFYA) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Afya (AFYA - Free Report) reached $18.13, with a -1.47% movement compared to the previous day. This change lagged the S&P 500's daily loss of 1.23%. Elsewhere, the Dow saw a downswing of 1.36%, while the tech-heavy Nasdaq depreciated by 1.4%.

The medical education company's shares have seen a decrease of 9.05% over the last month, not keeping up with the Consumer Discretionary sector's loss of 0.81% and the S&P 500's gain of 1.61%.

The upcoming earnings release of Afya will be of great interest to investors. On that day, Afya is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 41.18%.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.52 per share and a revenue of $638.06 million, signifying shifts of +18.75% and +10.72%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Afya. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Afya possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Afya currently has a Forward P/E ratio of 12.1. Its industry sports an average Forward P/E of 19.01, so one might conclude that Afya is trading at a discount comparatively.

Investors should also note that AFYA has a PEG ratio of 0.69 right now. 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. The Schools industry had an average PEG ratio of 1.16 as trading concluded yesterday.

The Schools industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 16, placing it within the top 7% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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