Affirm and JAKKS Pacific have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – July 17, 2025 – Zacks Equity Research shares Affirm Holdings AFRM as the Bull of the Day and JAKKS Pacific JAKK as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Mastercard Inc. MA, Visa Inc. V and PayPal Holdings, Inc. PYPL.Here is a synopsis of all five stocks:Bull of the Day:Affirm Holdings, a Zacks Rank #1 (Strong Buy), is a financial technology company specializing in payment solutions that provide consumers with flexible, transparent installment loans. By partnering with a diverse range of merchants, Affirm enables customers to pay for purchases over time.The stock is displaying relative strength and has been making a series of higher highs. The price movement is a sign of strength as we head into the second half of the year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.Affirm is part of the Zacks Financial Transaction Services industry group, which currently ranks in the top 31% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has over the past few months.Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.Company DescriptionAffirm Holdings operates a payment network in the United States, Canada, and internationally. Its platform includes point-of-sale payment solutions for consumers and merchants along with a consumer-focused app.The company boasts over 300,000 active merchants covering small businesses, large enterprises, direct-to-consumer brands, and brick-and-mortar stores. Its tools help merchants to boost sales and enhance customer engagement.Affirm's top-line momentum remains strong, supported by rising adoption of Affirm Cards and entry into high-growth verticals like gaming. A robust merchant network is fueling expansion with new alliances across travel, healthcare, and international markets.Partnerships with Adyen and Shopify are aiding European growth. Affirm's cloud-native platform uses machine learning and AI to optimize underwriting, improve efficiency and automate customer service.Earnings Trends and Future EstimatesAffirm has built up an impressive reporting history, surpassing earnings estimates in each of the past four quarters. The company delivered a trailing four-quarter average surprise of 102%.Back in May, Affirm reported fiscal third-quarter earnings of 1 cent per share, which marked a 111% surprise over the -$0.09/share consensus estimate. Higher transactions and robust repeat customer engagement also boosted performance.For the company's fiscal fourth quarter, analysts are expecting Affirm to deliver year-over-year EPS growth of 164% (9 cents per share) on nearly 27% higher revenues ($835 million). Affirm is scheduled to deliver the quarterly results in late August.Looking further out, analysts remain bullish on the stock and have raised fiscal 2026 earnings estimates by 5.71% in the past 60 days. The Zacks Consensus Estimate now stands at 74 cents per share, reflecting staggering growth of 2,355% relative to the prior year.Let's Get TechnicalThis market leader has seen its stock advance more than 80% off the April lows. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.The stock has been making a series of higher highs over the past few months. With both strong fundamental and technical indicators, AFRM stock is poised to continue its outperformance.Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Affirm has recently witnessed positive revisions. As long as this trend remains intact (and AFRM continues to deliver earnings beats), the stock will likely continue its bullish run.Bottom LineBacked by a leading industry group and history of earnings beats, it's not difficult to see why AFRM stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.Affirm has achieved strong revenue growth through diverse income streams including merchant network fees, interest from loans, and virtual card revenues. Advanced machine learning and predictive models power the company's cloud-based, data-driven platform.Recent positive earnings estimate revisions should also serve to create a 'floor' in terms of any sudden or unexpected downside moves. If you haven't already done so, be sure to put AFRM on your shortlist.Bear of the Day:JAKKS Pacific produces, sells, and distributes toys and related products. A multi-line, multi-brand company, JAKKS Pacific also sells electronics, kids indoor and outdoor furniture, and sporting goods. Its products include action figures, toy vehicles, dolls, inflatable tents, wagons, costumes, and other child-related accessories.The company sells its products through both in-house and independent sales teams to mass-market retail chains, grocery stores, toy specialty stores, and wholesalers. JAKKS was incorporated in 1995 and is headquartered in Santa Monica, California.The toy company faces several notable headwinds. Over 75% of its business operates on a Freight-On-Board (FOB) basis, with products sold either directly at the factory or through ports in China. Revenues have been under pressure in recent quarters due to lower orders in key categories. Tariff uncertainty, increased expenses, and depleting liquidity remain top concerns.The Zacks RundownA Zacks Rank #5 (Strong Sell) stock, JAKKS is part of the Zacks Toys – Games – Hobbies industry, which currently ranks in the bottom 2% out of approximately 250 industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months.Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.JAKK stock has been severely underperforming the market off the April lows. The stock has failed to show any real momentum and represents a compelling short opportunity as we head further into 2025.Recent Earnings Misses and Deteriorating OutlookJAKKS Pacific has fallen short of earnings estimates in four of the past six quarters. The company posted a trailing four-quarter average earnings miss of -283%. Consistently falling short of earnings estimates is a recipe for underperformance, and JAKK is no exception.The kids' accessories company has been on the receiving end of negative earnings estimate revisions as of late. Looking at the full year, analysts have slashed estimates by a whopping -38.26% in the past 60 days. The 2025 Zacks Consensus EPS Estimate is now $2.34 per share, reflecting negative growth of -38% relative to last year.Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.Let's Get TechnicalJAKK stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen more than 40% since February, all while the general market returned to new heights.Final ThoughtsA deteriorating fundamental and technical backdrop show that this stock is not set to hit new highs anytime soon. The fact that JAKKS Pacific is included in a weak industry group simply adds to the growing list of concerns.A history of earnings misses will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.JAKK shares continue to experience substantial volatility and have widely underperformed the market lately. With negative earnings estimate revisions continuing to pile up, this stock should be avoided as there are plenty of better alternatives in the current market environment.Additional content:Why Do Merchants Trust Mastercard in a Risky Digital World?Mastercard Inc. continues to gain the trust of merchants in today's digital world, where payment fraud and cyber threats are on the rise. The company's proactive security infrastructure and established industry reputation keep it at the top of merchant preference, which supports its volume growth. MA has invested heavily in cybersecurity.The company has rolled out AI-driven fraud detection tools, along with biometric authentication and tokenization technology that swaps out card details for unique identifiers, significantly lowering the risk of theft. Its exclusive Cyber Secure tool offers real-time risk assessments, enabling businesses to identify and tackle vulnerabilities before they can be taken advantage of. MA also launched Mastercard Agent Pay, which combines its agentic tokens with cybersecurity, fraud and franchise regulations. These will assist Microsoft and other partners in enabling safe, easy and programmable transactions across AI platforms.In addition to technology, MA is building trust via strategic partnerships and global compliance. The company collaborates closely with merchants and regulators to keep up with changing data privacy standards like GDPR and PCI DSS. Also, its acquisition of RiskRecon, a cybersecurity company, has boosted its ability to keep an eye on third-party risks, something that can be challenging for SMEs to handle on their own. MA also emphasizes education and transparency. With initiatives like the Trust Center and global fraud insights, it helps businesses stay updated.As e-commerce keeps expanding and digital fraud gets trickier, Mastercard's multi-layered defense model, real-time intelligence and collaborative ecosystem provide merchants with the confidence to concentrate on growth without worrying about threats.How Are Competitors Faring?Some of MA's competitors adopting AI to improve operations include Visa Inc. and PayPal Holdings, Inc..Visa is also making significant strides in cybersecurity. Visa poured over $10 billion over the past five years into AI and fraud prevention technologies, allowing their systems to sift through millions of transactions in real time to spot any unusual activity.PayPal is actively using AI to improve its platform in a number of ways, from streamlining checkout procedures to giving developers more flexible workflows. These AI-powered solutions demonstrate PayPal's dedication to increasing productivity, customizing communications and strengthening security for both customers and companies.Mastercard's Price Performance, Valuation & EstimatesIn the year-to-date period, MA's shares have gained 4.3% compared with the industry's rise of 2.4%.From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 31.59, above the industry average of 21.85. MA carries a Value Score of D.The Zacks Consensus Estimate for Mastercard's 2025 earnings implies 9.6% growth from the year-ago period.Mastercard currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpMedia ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks