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AvidXchange Holdings, Inc. (AVDX) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, AvidXchange Holdings, Inc. (AVDX - Free Report) closed at $10.82, marking a -0.82% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.23%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.34%.

Shares of the company witnessed a loss of 3.54% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.01% and the S&P 500's gain of 3.96%.

The investment community will be paying close attention to the earnings performance of AvidXchange Holdings, Inc. in its upcoming release. Simultaneously, our latest consensus estimate expects the revenue to be $106.32 million, showing a 16.64% escalation compared to the year-ago quarter.

AVDX's full-year Zacks Consensus Estimates are calling for earnings of $0.22 per share and revenue of $445.05 million. These results would represent year-over-year changes of +214.29% and +16.9%, respectively.

Any recent changes to analyst estimates for AvidXchange Holdings, Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. AvidXchange Holdings, Inc. is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, AvidXchange Holdings, Inc. is currently being traded at a Forward P/E ratio of 49.03. This valuation marks a premium compared to its industry's average Forward P/E of 30.42.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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