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Affirm Holdings (AFRM) Outperforms Broader Market: What You Need to Know

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In the latest close session, Affirm Holdings (AFRM - Free Report) was up +1.2% at $63.74. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq increased by 1.63%.

Shares of the operator of digital commerce platform have appreciated by 43.63% over the course of the past month, outperforming the Computer and Technology sector's gain of 12.05%, and the S&P 500's gain of 8.11%.

The investment community will be closely monitoring the performance of Affirm Holdings in its forthcoming earnings report. The company is scheduled to release its earnings on May 7, 2026. The company is predicted to post an EPS of $0.17, indicating a 1600% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $997.92 million, indicating a 27.43% increase compared to the same quarter of the previous year.

AFRM's full-year Zacks Consensus Estimates are calling for earnings of $1.08 per share and revenue of $4.14 billion. These results would represent year-over-year changes of +620% and +28.45%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.79% fall in the Zacks Consensus EPS estimate. Affirm Holdings is currently a Zacks Rank #3 (Hold).

Investors should also note Affirm Holdings's current valuation metrics, including its Forward P/E ratio of 58.19. This valuation marks a premium compared to its industry average Forward P/E of 18.57.

We can also see that AFRM currently has a PEG ratio of 4.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AFRM's industry had an average PEG ratio of 1.08 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 37% 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.

To follow AFRM in the coming trading sessions, be sure to utilize Zacks.com.

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