In the latest close session, Affirm Holdings (AFRM) was down 6.03% at $67.21. The stock trailed the S&P 500, which registered a daily loss of 0.77%. Elsewhere, the Dow saw a downswing of 0.67%, while the tech-heavy Nasdaq depreciated by 0.92%.
Heading into today, shares of the operator of digital commerce platform had lost 8.02% over the past month, lagging the Computer and Technology sector's gain of 6.26% and the S&P 500's gain of 0.96%.
The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.34, marking a 47.83% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.21 billion, indicating a 29.95% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.87 per share and a revenue of $5.51 billion, signifying shifts of -66.18% and +29.37%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 8.13% higher within the past month. Right now, Affirm Holdings possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Affirm Holdings is at present trading with a Forward P/E ratio of 38.17. This represents a premium compared to its industry average Forward P/E of 18.89.
It's also important to note that AFRM currently trades at a PEG ratio of 2.93. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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).