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Affirm Holdings (AFRM) Dips More Than Broader Market: What You Should Know

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Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $74.52, moving -4.89% from the previous trading session. This move lagged the S&P 500's daily loss of 0.52%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.32%.

Prior to today's trading, shares of the operator of digital commerce platform had gained 3% outpaced the Computer and Technology sector's gain of 1.99% and lagged the S&P 500's gain of 3.3%.

Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to go public on August 27, 2026. The company's upcoming EPS is projected at $0.33, signifying a 65.00% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.11 billion, reflecting a 26.39% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $4.21 billion, which would represent changes of +726.67% and +30.62%, respectively, from the prior year.

Any recent changes to analyst estimates for Affirm Holdings should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.03% lower. Affirm Holdings presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Affirm Holdings is currently exchanging hands at a Forward P/E ratio of 45.6. Its industry sports an average Forward P/E of 21.52, so one might conclude that Affirm Holdings is trading at a premium comparatively.

One should further note that AFRM currently holds a PEG ratio of 3.2. 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. The Internet - Software industry had an average PEG ratio of 1.05 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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