Afya (AFYA) Stock Slides as Market Rises: Facts to Know Before You Trade
Afya (AFYA) closed at $20.23 in the latest trading session, marking a -0.3% move from the prior day. This change lagged the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.58%.
Coming into today, shares of the medical education company had gained 0.3% in the past month. In that same time, the Consumer Discretionary sector gained 1.3%, while the S&P 500 gained 2.94%.
The investment community will be paying close attention to the earnings performance of Afya in its upcoming release. On that day, Afya is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 30.77%. At the same time, our most recent consensus estimate is projecting a revenue of $141.83 million, reflecting a 27.8% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Afya. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Afya currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Afya is currently trading at a Forward P/E ratio of 13.23. This indicates a discount in contrast to its industry's Forward P/E of 18.81.
Meanwhile, AFYA's PEG ratio is currently 0.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Schools stocks are, on average, holding a PEG ratio of 1.18 based on yesterday's closing prices.
The Schools industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 10, this industry ranks in the top 4% of all industries, numbering over 250.
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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Afya Limited (AFYA) : Free Stock Analysis Report
