Afya (AFYA) Rises As Market Takes a Dip: Key Facts
In the latest market close, Afya (AFYA) reached $20.44, with a +1.79% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.32%. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.
Heading into today, shares of the medical education company had lost 3.6% over the past month, lagging the Consumer Discretionary sector's gain of 2.23% and the S&P 500's gain of 4.59% in that time.
Market participants will be closely following the financial results of Afya in its upcoming release. In that report, analysts expect Afya to post earnings of $0.34 per share. This would mark year-over-year growth of 30.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $141.83 million, up 27.8% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Afya. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, the Zacks Consensus EPS estimate has remained steady. Afya currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Afya is currently trading at a Forward P/E ratio of 13.07. This expresses a discount compared to the average Forward P/E of 15.5 of its industry.
We can additionally observe that AFYA currently boasts a PEG ratio of 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AFYA's industry had an average PEG ratio of 1.05 as of yesterday's close.
The Schools industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Afya Limited (AFYA) : Free Stock Analysis Report
