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Affirm Holdings (AFRM) Outperforms Broader Market: What You Need to Know
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In the latest trading session, Affirm Holdings (AFRM - Free Report) closed at $70.44, marking a +1.75% move from the previous day. This change outpaced the S&P 500's 0.2% gain on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.04%.
Heading into today, shares of the operator of digital commerce platform had lost 6.56% over the past month, lagging the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.
The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 47.83% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.21 billion, indicating a 29.95% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.87 per share and revenue of $5.51 billion. These totals would mark changes of -66.18% and +29.37%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 1.23% higher. Affirm Holdings currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Affirm Holdings is presently trading at a Forward P/E ratio of 36.95. This valuation marks a premium compared to its industry average Forward P/E of 19.07.
It is also worth noting that AFRM currently has a PEG ratio of 2.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.14.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Affirm Holdings (AFRM) Outperforms Broader Market: What You Need to Know
In the latest trading session, Affirm Holdings (AFRM - Free Report) closed at $70.44, marking a +1.75% move from the previous day. This change outpaced the S&P 500's 0.2% gain on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.04%.
Heading into today, shares of the operator of digital commerce platform had lost 6.56% over the past month, lagging the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.
The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 47.83% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.21 billion, indicating a 29.95% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.87 per share and revenue of $5.51 billion. These totals would mark changes of -66.18% and +29.37%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 1.23% higher. Affirm Holdings currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Affirm Holdings is presently trading at a Forward P/E ratio of 36.95. This valuation marks a premium compared to its industry average Forward P/E of 19.07.
It is also worth noting that AFRM currently has a PEG ratio of 2.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.14.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.