Affirm Holdings (AFRM) Soars 19.3%: Is Further Upside Left in the Stock?

Affirm Holdings (AFRM) shares soared 19.3% in the last trading session to close at $21.14. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 79.2% gain over the past four weeks.

The stock is currently benefiting from growth in the company’s gross merchandise volume, active consumers and transactions per active consumer.

This operator of digital commerce platform is expected to post quarterly loss of $1.01 per share in its upcoming report, which represents a year-over-year change of -77.2%. Revenues are expected to be $420.54 million, up 16.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Affirm Holdings, the consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AFRM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Affirm Holdings belongs to the Zacks Business - Services industry. Another stock from the same industry, Everi Holdings (EVRI), closed the last trading session 2% higher at $18.37. Over the past month, EVRI has returned 24%.

For Everi Holdings , the consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $0.24. This represents a change of -7.7% from what the company reported a year ago. Everi Holdings currently has a Zacks Rank of #4 (Sell).

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

Everi Holdings Inc. (EVRI) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research