Affirm Holdings (AFRM) closed the most recent trading day at $85.78, moving +1.42% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.12%.
Prior to today's trading, shares of the operator of digital commerce platform had gained 32.97% outpaced the Computer and Technology sector's loss of 6.12% and the S&P 500's loss of 0.9%.
The upcoming earnings release of Affirm Holdings will be of great interest to investors. It is anticipated that the company will report an EPS of $0.34, marking a 70% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 26.19% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.24 per share and revenue of $4.21 billion, indicating changes of +726.67% and +30.59%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.63% higher. Affirm Holdings is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Affirm Holdings is presently being traded at a Forward P/E ratio of 49.64. This valuation marks a premium compared to its industry average Forward P/E of 19.82.
We can also see that AFRM currently has a PEG ratio of 3.48. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.08.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 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.
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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Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).