Affirm Holdings (AFRM) Suffers a Larger Drop Than the General Market: Key Insights

In the latest trading session, Affirm Holdings (AFRM) closed at $64.72, marking a -5.58% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.33%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.22%. Shares of the operator of digital commerce platform have appreciated by 12.28% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.24%, and the S&P 500's gain of 4.07%.The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. The company's earnings per share (EPS) are projected to be $0.09, reflecting a 164.29% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $835.09 million, showing a 26.69% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates are projecting earnings of $0.03 per share and revenue of $3.18 billion, which would represent changes of +101.8% and 0%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Affirm Holdings boasts a Zacks Rank of #3 (Hold). In terms of valuation, Affirm Holdings is currently trading at a Forward P/E ratio of 97.46. This denotes a premium relative to the industry average Forward P/E of 28.6. One should further note that AFRM currently holds a PEG ratio of 2.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AFRM's industry had an average PEG ratio of 2.21 as of yesterday's close. The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 28% 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Should You Invest in Affirm Holdings, Inc. (AFRM)?Before you invest in Affirm Holdings, Inc. (AFRM), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)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 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