Affirm Holdings (AFRM) ended the recent trading session at $81.93, demonstrating a -1.79% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 1.55%.
The operator of digital commerce platform's stock has climbed by 26.07% in the past month, exceeding the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The upcoming earnings release of Affirm Holdings will be of great interest to investors. In that report, analysts expect Affirm Holdings to post earnings of $0.33 per share. This would mark year-over-year growth of 65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 26.39% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.23 per share and a revenue of $4.21 billion, indicating changes of +720% and +30.62%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.52% increase. Affirm Holdings is currently a Zacks Rank #3 (Hold).
With respect to valuation, Affirm Holdings is currently being traded at a Forward P/E ratio of 48.05. For comparison, its industry has an average Forward P/E of 19.66, which means Affirm Holdings is trading at a premium to the group.
Also, we should mention that AFRM has a PEG ratio of 3.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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
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