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Affirm Holdings (AFRM) Outpaces Stock Market Gains: What You Should Know

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In the latest close session, Affirm Holdings (AFRM - Free Report) was up +1.26% at $64.28. The stock's performance was ahead of the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.

Coming into today, shares of the operator of digital commerce platform had gained 39.39% in the past month. In that same time, the Computer and Technology sector gained 20.71%, while the S&P 500 gained 12.23%.

Investors will be eagerly watching for the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 7, 2026. On that day, Affirm Holdings is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 1600%. Meanwhile, our latest consensus estimate is calling for revenue of $997.92 million, up 27.43% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.08 per share and a revenue of $4.14 billion, signifying shifts of +620% and +28.45%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Affirm Holdings. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.1% lower. Affirm Holdings presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Affirm Holdings is currently being traded at a Forward P/E ratio of 58.84. This represents a premium compared to its industry average Forward P/E of 18.9.

It's also important to note that AFRM currently trades at a PEG ratio of 4.44. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.07 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 72, finds itself in the top 30% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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