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Afya (AFYA) Stock Sinks As Market Gains: What You Should Know

Afya (AFYA) closed at $12.59 in the latest trading session, marking a -1.33% move from the prior day. This move lagged the S&P 500's daily gain of 0.19%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Heading into today, shares of the medical education company had gained 32.78% over the past month, outpacing the Consumer Discretionary sector's gain of 12.35% and the S&P 500's gain of 11.37% in that time.

Wall Street will be looking for positivity from Afya as it approaches its next earnings report date. This is expected to be August 22, 2022. In that report, analysts expect Afya to post earnings of $0.23 per share. This would mark year-over-year growth of 666.67%. Our most recent consensus estimate is calling for quarterly revenue of $119.45 million, up 69.94% from the year-ago period.

AFYA's full-year Zacks Consensus Estimates are calling for earnings of $1.06 per share and revenue of $492.92 million. These results would represent year-over-year changes of +27.71% and +54.68%, respectively.

Investors should also note any recent changes to analyst estimates for Afya. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Afya is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Afya is currently trading at a Forward P/E ratio of 12.04. This represents a discount compared to its industry's average Forward P/E of 15.09.

We can also see that AFYA currently has a PEG ratio of 0.37. 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. Schools stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.

The Schools industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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