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Affirm Holdings (AFRM) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, Affirm Holdings (AFRM - Free Report) closed at $72.80, marking a -1.63% move from the previous day. This move lagged the S&P 500's daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.

The stock of operator of digital commerce platform has risen by 3.93% in the past month, leading the Computer and Technology sector's loss of 0.92% and the S&P 500's gain of 1.46%.

The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. The company is slated to reveal its earnings on November 5, 2026. On that day, Affirm Holdings is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 52.17%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.21 billion, indicating a 30.03% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.91 per share and revenue of $5.51 billion, indicating changes of -65.46% and +29.41%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 1.84% upward. Affirm Holdings is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, Affirm Holdings is currently being traded at a Forward P/E ratio of 38.79. This denotes a premium relative to the industry average Forward P/E of 20.63.

Investors should also note that AFRM has a PEG ratio of 2.97 right now. 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. The Internet - Software was holding an average PEG ratio of 1.22 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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