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Affirm Holdings (AFRM) Beats Stock Market Upswing: What Investors Need to Know

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Affirm Holdings (AFRM - Free Report) ended the recent trading session at $77.71, demonstrating a +1.07% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Meanwhile, the Dow experienced a rise of 1.04%, and the technology-dominated Nasdaq saw an increase of 0.14%.

Shares of the operator of digital commerce platform witnessed a gain of 16.23% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.64%, and the S&P 500's gain of 3.08%.

The upcoming earnings release of Affirm Holdings will be of great interest to investors. The company's earnings report is expected on August 28, 2025. The company's upcoming EPS is projected at $0.11, signifying a 178.57% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $839.88 million, indicating a 27.41% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.05 per share and revenue of $3.19 billion. These totals would mark changes of +102.99% and 0%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Affirm Holdings. 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 business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has moved 7.74% higher. Affirm Holdings currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Affirm Holdings is currently trading at a Forward P/E ratio of 101.46. For comparison, its industry has an average Forward P/E of 28.84, which means Affirm Holdings is trading at a premium to the group.

Also, we should mention that AFRM has a PEG ratio of 2.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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