Affirm Holdings (AFRM) Stock Declines While Market Improves: Some Information for Investors

In the latest trading session, Affirm Holdings (AFRM) closed at $66.75, marking a -3.12% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.

Coming into today, shares of the operator of digital commerce platform had gained 11.02% in the past month. In that same time, the Computer and Technology sector gained 7.37%, while the S&P 500 gained 5.35%.

Market participants will be closely following the financial results of Affirm Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.1, marking a 171.43% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $838.52 million, indicating a 27.21% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.03 per share and a revenue of $3.18 billion, representing changes of +101.8% and 0%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.98% increase. As of now, Affirm Holdings holds a Zacks Rank of #1 (Strong Buy).

Investors should also note Affirm Holdings's current valuation metrics, including its Forward P/E ratio of 93.83. This valuation marks a premium compared to its industry average Forward P/E of 29.16.

We can also see that AFRM currently has a PEG ratio of 2.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.2 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries.

Story ContinuesThe 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.

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

This article originally published on Zacks Investment Research (zacks.com).

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