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AvidXchange Holdings, Inc. (AVDX) Falls More Steeply Than Broader Market: What Investors Need to Know

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AvidXchange Holdings, Inc. (AVDX - Free Report) ended the recent trading session at $9.63, demonstrating a -1.73% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.54%. On the other hand, the Dow registered a loss of 1.63%, and the technology-centric Nasdaq decreased by 1.63%.

The company's stock has dropped by 12.19% in the past month, falling short of the Computer and Technology sector's gain of 0.11% and the S&P 500's loss of 2.2%.

The investment community will be paying close attention to the earnings performance of AvidXchange Holdings, Inc. in its upcoming release. The company is predicted to post an EPS of $0.06, indicating a 20% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $114.98 million, showing a 10.49% escalation compared to the year-ago quarter.

It is also important to note the recent changes to analyst estimates for AvidXchange Holdings, Inc. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, AvidXchange Holdings, Inc. is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, AvidXchange Holdings, Inc. is currently trading at a Forward P/E ratio of 29.92. This expresses a premium compared to the average Forward P/E of 28.07 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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