Latest news with #AFRM
Yahoo
a day ago
- Business
- Yahoo
Affirm Holdings (AFRM) Stock Falls Amid Market Uptick: What Investors Need to Know
Affirm Holdings (AFRM) ended the recent trading session at $65.43, demonstrating a -1.98% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.06%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 0.39%. Heading into today, shares of the operator of digital commerce platform had gained 7.33% over the past month, lagging the Computer and Technology sector's gain of 9.6% and outpacing the S&P 500's gain of 5.88%. The investment community will be paying close attention to the earnings performance of Affirm Holdings in its upcoming release. The company's upcoming EPS is projected at $0.1, signifying a 171.43% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $838.52 million, up 27.21% from the year-ago period. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.03 per share and a revenue of $3.18 billion, representing changes of +101.8% and 0%, respectively, from the prior year. Investors should also pay attention to any latest changes in analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 5.57% rise in the Zacks Consensus EPS estimate. Affirm Holdings currently has a Zacks Rank of #1 (Strong Buy). In the context of valuation, Affirm Holdings is at present trading with a Forward P/E ratio of 89.9. This indicates a premium in contrast to its industry's Forward P/E of 29.18. Investors should also note that AFRM has a PEG ratio of 2.52 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.18. The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting 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. Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Affirm Holdings (AFRM) Stock Declines While Market Improves: Some Information for Investors
In the latest trading session, Affirm Holdings (AFRM) closed at $66.75, marking a -3.12% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%. Coming into today, shares of the operator of digital commerce platform had gained 11.02% in the past month. In that same time, the Computer and Technology sector gained 7.37%, while the S&P 500 gained 5.35%. Market participants will be closely following the financial results of Affirm Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.1, marking a 171.43% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $838.52 million, indicating a 27.21% upward movement from the same quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.03 per share and a revenue of $3.18 billion, representing changes of +101.8% and 0%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.98% increase. As of now, Affirm Holdings holds a Zacks Rank of #1 (Strong Buy). Investors should also note Affirm Holdings's current valuation metrics, including its Forward P/E ratio of 93.83. This valuation marks a premium compared to its industry average Forward P/E of 29.16. We can also see that AFRM currently has a PEG ratio of 2.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.2 as of yesterday's close. The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries. The Zacks Industry Rank is ordered 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. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
How Vertical Integration Is Fueling Affirm's Profitability in BNPL
Affirm Holdings Inc AFRM, a key player in the Buy Now, Pay Later (BNPL) space, is focusing on vertical integration to boost its profitability in a competitive and capital-heavy industry. With increasing pressure from regulators, high interest rates and stiff competition from rivals, AFRM's approach to take control of more of the BNPL value chain could be a game-changer. At its core, vertical integration means the company is taking charge of everything — from underwriting and loan origination to servicing and collections in many cases — rather than leaning heavily on third-party banks or partners. For instance, AFRM now relies on its own in-house algorithm to assess creditworthiness instead of solely depending on traditional credit scores. This shift enables better risk-based pricing, quicker approvals and greater control over loan performance. One of the key aspects of this strategy is the increasing reliance on in-house funding. By blending its balance sheet with warehouse credit funding, Affirm will be able to lessen its dependence on expensive external capital, which ultimately boosts its net interest margin. This shift in structure could help soften the effects of broader economic challenges, like the rising cost of funds, which is a significant barrier to profitability for many BNPL companies. In the third quarter of fiscal 2025, the company's total revenues improved 36% year over year. Also, its adjusted operating margin improved 860 basis points year over year in the same quarter. AFRM's strategy of vertical integration isn't just a smart defensive tactic — it's a key to long-term profitability. How Are Competitors Faring? Some of AFRM's competitors in the BNPL space are PayPal Holdings, Inc. PYPL and Block, Inc. XYZ. PayPal controls the entire value chain, handling everything from underwriting and transaction processing to collections and customer support. PayPal's deep integration with merchants and large global user base allows it to offer BNPL services efficiently without incurring high customer acquisition costs. Afterpay, part of Block, takes a different approach than AFRM by being less vertically integrated. It acts more like a BNPL facilitator that focuses on merchants, offering interest-free installment plans while depending on Block's access to capital for its funding. Affirm's Price Performance, Valuation & Estimates Over the past year, AFRM's shares have skyrocketed 131.9% compared with the industry's growth of 41.8%. Image Source: Zacks Investment Research From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 5.64, slightly below the industry average of 5.7. AFRM carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings implies 101.8% growth from the year-ago period. Image Source: Zacks Investment Research Affirm currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 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 PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
5 days ago
- Business
- Globe and Mail
How Vertical Integration Is Fueling Affirm's Profitability in BNPL
Affirm Holdings Inc AFRM, a key player in the Buy Now, Pay Later (BNPL) space, is focusing on vertical integration to boost its profitability in a competitive and capital-heavy industry. With increasing pressure from regulators, high interest rates and stiff competition from rivals, AFRM's approach to take control of more of the BNPL value chain could be a game-changer. At its core, vertical integration means the company is taking charge of everything — from underwriting and loan origination to servicing and collections in many cases — rather than leaning heavily on third-party banks or partners. For instance, AFRM now relies on its own in-house algorithm to assess creditworthiness instead of solely depending on traditional credit scores. This shift enables better risk-based pricing, quicker approvals and greater control over loan performance. One of the key aspects of this strategy is the increasing reliance on in-house funding. By blending its balance sheet with warehouse credit funding, Affirm will be able to lessen its dependence on expensive external capital, which ultimately boosts its net interest margin. This shift in structure could help soften the effects of broader economic challenges, like the rising cost of funds, which is a significant barrier to profitability for many BNPL companies. In the third quarter of fiscal 2025, the company's total revenues improved 36% year over year. Also, its adjusted operating margin improved 860 basis points year over year in the same quarter. AFRM's strategy of vertical integration isn't just a smart defensive tactic — it's a key to long-term profitability. How Are Competitors Faring? Some of AFRM's competitors in the BNPL space are PayPal Holdings, Inc. PYPL and Block, Inc. XYZ. PayPal controls the entire value chain, handling everything from underwriting and transaction processing to collections and customer support. PayPal's deep integration with merchants and large global user base allows it to offer BNPL services efficiently without incurring high customer acquisition costs. Afterpay, part of Block, takes a different approach than AFRM by being less vertically integrated. It acts more like a BNPL facilitator that focuses on merchants, offering interest-free installment plans while depending on Block's access to capital for its funding. Affirm's Price Performance, Valuation & Estimates Over the past year, AFRM's shares have skyrocketed 131.9% compared with the industry 's growth of 41.8%. From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 5.64, slightly below the industry average of 5.7. AFRM carries a Value Score of F. The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings implies 101.8% growth from the year-ago period. Affirm currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. 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 PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
Yahoo
16-07-2025
- Business
- Yahoo
More Transactions, Less Interest: Can Affirm Still Win BNPL?
Affirm Holdings, Inc. AFRM has developed a robust system to handle a higher number of transactions by leveraging its proprietary technology infrastructure, deep data capabilities and efficient risk models. Furthermore, Affirm integrates easily with merchant APIs, which helps maintain seamless transaction flows across a growing network of roughly 358,000 active merchants as of March 31, 2025. The company's revenues are closely tied to the number of transactions processed on its platform, as each transaction generates potential revenues through either merchant fees or consumer interest income. Transaction count increased 46% year over year in the third quarter of fiscal 2025. Affirm offers flexible financing solutions including Pay-in-four biweekly plans, 0% APR monthly installments and interest-bearing loans. Despite a surge in transactions, concerns arise as the share of Affirm's 0% APR in total GMV is growing. 0% APR monthly instalment GMV jumped 44% YoY in the fiscal third quarter 2025. AFRM generally makes less money from these loans compared with high-interest-bearing ones and it can affect its interest margin. Nevertheless, the company is intentionally pushing 0% APR plans to attract higher-quality borrowers and boost conversion metrics, which can lower risk and improve lifetime value. Also, it earns larger merchant fees from these transactions. If Affirm can continue scaling transaction volume while balancing its loan mix, the strategy could support sustainable growth even with thinner margins How are Competitors Faring? Some of Affirm's key competitors in the buy now, pay later (BNPL) space include PayPal Holdings, Inc. PYPL and Visa Inc. V, both of which enjoy a strong presence in the BNPL market. PayPal offers BNPL services under the PayPal Pay Later brand across the US, UK, France, Germany, and Japan (via its Paidy brand). It processed 6 billion transactions in the first quarter of 2025. PYPL's net revenues rose 1% year over year to $7.8 billion. Visa offers BNPL solutions via issuers and fintechs. Its processed transactions increased 9% year over year in the second quarter of fiscal 2025. V's total revenues advanced 9% year over year, supported by year-over-year increases of 8% and 13% in payments volume and cross-border volume. Affirm's Price Performance, Valuation & Estimates Shares of Affirm have surged 104.9% in the past year compared with the industry's 42.3% growth. Image Source: Zacks Investment Research From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 5.38, below the industry average of 5.7. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings implies 101.8% improvement from the year-ago period. The consensus mark for revenues indicates 37% year-over-year growth. Image Source: Zacks Investment Research AFRM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 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 Visa Inc. (V) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
