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Affirm Holdings (AFRM) Exceeds Market Returns: Some Facts to Consider

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Affirm Holdings (AFRM - Free Report) closed at $44.54 in the latest trading session, marking a +1.39% move from the prior day. This change outpaced the S&P 500's 0.4% gain on the day. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.63%.

Coming into today, shares of the operator of digital commerce platform had lost 2.33% in the past month. In that same time, the Business Services sector gained 3.38%, while the S&P 500 gained 3.76%.

Market participants will be closely following the financial results of Affirm Holdings in its upcoming release. The company plans to announce its earnings on November 7, 2024. At the same time, our most recent consensus estimate is projecting a revenue of $662.83 million, reflecting a 33.49% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of -$0.75 per share and a revenue of $3.01 billion, demonstrating changes of +55.09% and +29.63%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9% increase. Affirm Holdings is holding a Zacks Rank of #1 (Strong Buy) right now.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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