Affirm Holdings (AFRM) Rises As Market Takes a Dip: Key Facts

Affirm Holdings (AFRM) ended the recent trading session at $73.55, demonstrating a +2.95% change from the preceding day's closing price. This change outpaced the S&P 500's 0.48% loss on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.56%.

The operator of digital commerce platform's shares have seen a decrease of 8.82% over the last month, not keeping up with the Computer and Technology sector's gain of 1.49% and the S&P 500's loss of 0.82%.

Investors will be eagerly watching for the performance of Affirm Holdings in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.34, showcasing a 47.83% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.21 billion, up 29.95% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.87 per share and revenue of $5.51 billion, which would represent changes of -66.18% and +29.37%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.65% increase. 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 38.13. This valuation marks a premium compared to its industry average Forward P/E of 19.75.

Investors should also note that AFRM has a PEG ratio of 2.92 right now. 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 currently had an average PEG ratio of 1.09 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 85, which puts it in the top 35% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research