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Affirm Holdings (AFRM) Gains But Lags Market: What You Should Know

In the latest trading session, Affirm Holdings (AFRM) closed at $19.01, marking a +1.33% move from the previous day. The stock lagged the S&P 500's daily gain of 2.59%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today's trading, shares of the operator of digital commerce platform had lost 16.44% over the past month. This has lagged the Business Services sector's loss of 11.17% and the S&P 500's loss of 9.22% in that time.

Affirm Holdings will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.53, down 32.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $360.72 million, up 33.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.80 per share and revenue of $1.7 billion, which would represent changes of -11.55% and +26.32%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.58% lower. Affirm Holdings is currently sporting a Zacks Rank of #3 (Hold).

The Business - Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow AFRM in the coming trading sessions, be sure to utilize Zacks.com.


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