Affirm Holdings (AFRM) ended the recent trading session at $60.28, demonstrating a +1.11% change from the preceding day’s closing price. This move outpaced the S&P 500’s daily gain of 0.26%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.36%.
The operator of digital commerce platform’s stock has climbed by 34.22% in the past month, exceeding the Computer and Technology sector’s gain of 9.34% and the S&P 500’s gain of 5.98%.
The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.17, marking a 1600% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $997.92 million, reflecting a 27.43% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.09 per share and a revenue of $4.14 billion, demonstrating changes of +626.67% and +28.45%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.15% lower. Affirm Holdings currently has a Zacks Rank of #3 (Hold).
Investors should also note Affirm Holdings’s current valuation metrics, including its Forward P/E ratio of 54.7. This represents a premium compared to its industry average Forward P/E of 18.83.
It’s also important to note that AFRM currently trades at a PEG ratio of 4.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. By the end of yesterday’s trading, the Internet – Software industry had an average PEG ratio of 1.09.
