Affirm Holdings (AFRM) Advances While Market Declines: Some Information for Investors
Affirm Holdings (AFRM) ended the recent trading session at $41.34, demonstrating a +1.55% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.07%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.36%.
Prior to today's trading, shares of the operator of digital commerce platform had lost 20.78% over the past month. This has lagged the Business Services sector's gain of 1.03% and the S&P 500's gain of 3.05% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to go public on February 8, 2024. The company is expected to report EPS of $0.07, up 106.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $518.42 million, up 29.75% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.33 per share and revenue of $2.02 billion, indicating changes of +109.88% and +27.45%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, there's been no change in the Zacks Consensus EPS estimate. Right now, Affirm Holdings possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Affirm Holdings is currently exchanging hands at a Forward P/E ratio of 122.13. Its industry sports an average Forward P/E of 15.85, so one might conclude that Affirm Holdings is trading at a premium comparatively.
We can additionally observe that AFRM currently boasts a PEG ratio of 8.37. 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. AFRM's industry had an average PEG ratio of 1.42 as of yesterday's close.
The Business - Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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
