Here's Why AvidXchange Holdings, Inc. (AVDX) Fell More Than Broader Market
AvidXchange Holdings, Inc. (AVDX) closed the most recent trading day at $12.13, moving -1.14% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.6%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
Shares of the company witnessed a gain of 11.34% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.1% and the S&P 500's gain of 3.56%.
The upcoming earnings release of AvidXchange Holdings, Inc. will be of great interest to investors. The company's earnings report is expected on February 28, 2024. The company is predicted to post an EPS of $0, indicating a 100% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $98.64 million, up 14.45% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for AvidXchange Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, AvidXchange Holdings, Inc. is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AvidXchange Holdings, Inc. has a Forward P/E ratio of 100.16 right now. This expresses a premium compared to the average Forward P/E of 31.91 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AVDX in the coming trading sessions, be sure to utilize Zacks.com.
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AvidXchange Holdings, Inc. (AVDX) : Free Stock Analysis Report
