Affirm Holdings (AFRM) Stock Falls Amid Market Uptick: What Investors Need to Know

In the most recent trading session, Affirm Holdings (AFRM) ended the day at $72.80, reflecting a decline of 1.63% from the previous day’s closing price. This performance fell short of the S&P 500’s increase of 0.41%. During the same session, the Dow Jones Industrial Average experienced a slight dip of 0.07%, while the Nasdaq composite, which is heavily weighted towards technology stocks, saw a gain of 1.11%.

Over the past month, Affirm Holdings has seen its stock rise by 3.93%. This increase stands in contrast to the Computer and Technology sector, which reported a loss of 0.92%, and the S&P 500, which managed a gain of 1.46% during the same period.

Investors are keenly anticipating the upcoming earnings report from Affirm Holdings, scheduled for November 5, 2026. Analysts expect the company to announce earnings of $0.35 per share, indicating a substantial year-over-year growth of 52.17%. Additionally, the consensus estimate for revenue is set at $1.21 billion, suggesting a 30.03% increase compared to the same quarter last year.

Looking at the broader financial outlook for the year, the Zacks Consensus Estimates predict that Affirm Holdings will report earnings of $1.91 per share and total revenue of $5.51 billion. These figures represent a significant decline of 65.46% in earnings, but a notable increase of 29.41% in revenue compared to the previous year.

Investors should also pay attention to any recent changes in analyst estimates for Affirm Holdings. Adjustments to these estimates often reflect current business trends, with positive revisions suggesting increased analyst confidence in the company’s performance and profit potential.

Research indicates a direct correlation between these estimate changes and stock price movements in the near term. To aid investors in this regard, Zacks has developed a proprietary ranking system known as the Zacks Rank, which incorporates these estimate changes into a rating model.

The Zacks Rank operates on a scale from #1 (Strong Buy) to #5 (Strong Sell) and has demonstrated a strong track record, with #1 rated stocks averaging an annual return of 25% since 1988. In the last month, the consensus earnings per share estimate for Affirm Holdings has risen by 1.84%, leading to its current Zacks Rank of #2 (Buy).

From a valuation perspective, Affirm Holdings is trading at a Forward Price-to-Earnings (P/E) ratio of 38.79, which is significantly higher than the industry average Forward P/E of 20.63.

Additionally, the company has a PEG ratio of 2.97, which is a metric that, like the P/E ratio, considers the stock's expected earnings growth rate. For comparison, the average PEG ratio in the Internet - Software sector was recorded at 1.22 at the end of the previous trading day.