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Why the Market Dipped But AvidXchange Holdings, Inc. (AVDX) Gained Today

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AvidXchange Holdings, Inc. (AVDX - Free Report) ended the recent trading session at $8.09, demonstrating a +1.51% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.19%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 0.36%.

The company's stock has climbed by 2.57% in the past month, exceeding the Computer and Technology sector's loss of 0.09% and the S&P 500's gain of 2.06%.

The upcoming earnings release of AvidXchange Holdings, Inc. will be of great interest to investors. On that day, AvidXchange Holdings, Inc. is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 133.33%. Meanwhile, our latest consensus estimate is calling for revenue of $110.89 million, up 12.37% from the prior-year quarter.

AVDX's full-year Zacks Consensus Estimates are calling for earnings of $0.24 per share and revenue of $438.08 million. These results would represent year-over-year changes of +242.86% and +15.07%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for AvidXchange Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AvidXchange Holdings, Inc. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note AvidXchange Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 33.21. This represents a premium compared to its industry's average Forward P/E of 32.18.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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