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Why Affirm Holdings (AFRM) Outpaced the Stock Market Today
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Affirm Holdings (AFRM - Free Report) ended the recent trading session at $60.28, demonstrating a +1.11% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.36%.
The operator of digital commerce platform's stock has climbed by 34.22% in the past month, exceeding the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.17, marking a 1600% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $997.92 million, reflecting a 27.43% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.09 per share and a revenue of $4.14 billion, demonstrating changes of +626.67% and +28.45%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Within the past 30 days, our consensus EPS projection has moved 2.15% lower. Affirm Holdings currently has a Zacks Rank of #3 (Hold).
Investors should also note Affirm Holdings's current valuation metrics, including its Forward P/E ratio of 54.7. This represents a premium compared to its industry average Forward P/E of 18.83.
It's also important to note that AFRM currently trades at a PEG ratio of 4.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Why Affirm Holdings (AFRM) Outpaced the Stock Market Today
Affirm Holdings (AFRM - Free Report) ended the recent trading session at $60.28, demonstrating a +1.11% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.36%.
The operator of digital commerce platform's stock has climbed by 34.22% in the past month, exceeding the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.17, marking a 1600% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $997.92 million, reflecting a 27.43% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.09 per share and a revenue of $4.14 billion, demonstrating changes of +626.67% and +28.45%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Within the past 30 days, our consensus EPS projection has moved 2.15% lower. Affirm Holdings currently has a Zacks Rank of #3 (Hold).
Investors should also note Affirm Holdings's current valuation metrics, including its Forward P/E ratio of 54.7. This represents a premium compared to its industry average Forward P/E of 18.83.
It's also important to note that AFRM currently trades at a PEG ratio of 4.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.