Affirm Holdings (AFRM) Stock Moves -1.40%: What You Should Know

In the latest close session, Affirm Holdings (AFRM) was down 1.4% at $43.81. The stock's change was more than the S&P 500's daily loss of 1.51%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.01%.

Heading into today, shares of the operator of digital commerce platform had lost 14.26% over the past month, lagging the Computer and Technology sector's loss of 1.84% and the S&P 500's loss of 3.63%.

Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.18, reflecting a 1700% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $997.92 million, up 27.43% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.11 per share and a revenue of $4.14 billion, indicating changes of +640% and +28.47%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

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 has moved 2.11% higher. Affirm Holdings currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Affirm Holdings is currently being traded at a Forward P/E ratio of 39.88. Its industry sports an average Forward P/E of 19.06, so one might conclude that Affirm Holdings is trading at a premium comparatively.

It's also important to note that AFRM currently trades at a PEG ratio of 1.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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This article originally published on Zacks Investment Research (zacks.com).

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