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Affirm Holdings (AFRM) Increases Yet Falls Behind Market: What Investors Need to Know

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In the latest trading session, Affirm Holdings (AFRM - Free Report) closed at $47.97, marking a +0.23% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.47%. On the other hand, the Dow registered a gain of 0.79%, and the technology-centric Nasdaq increased by 0.28%.

Coming into today, shares of the operator of digital commerce platform had gained 8.77% in the past month. In that same time, the Business Services sector gained 2.97%, while the S&P 500 gained 3.48%.

Market participants will be closely following the financial results of Affirm Holdings in its upcoming release. Our most recent consensus estimate is calling for quarterly revenue of $662.83 million, up 33.49% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.75 per share and revenue of $3.01 billion. These totals would mark changes of +55.09% and +29.63%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9% higher within the past month. Right now, Affirm Holdings possesses a Zacks Rank of #1 (Strong Buy).

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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