Affirm Holdings (AFRM) Laps the Stock Market: Here's Why

Company Overview - Affirm Holdings (AFRM) closed at $56.76, reflecting a +0.57% change from the previous day, outperforming the S&P 500's gain of 0.53% [1] - The stock has experienced a decline of 14.36% over the past month, underperforming the Business Services sector's gain of 1.06% and the S&P 500's gain of 2.69% [1] Upcoming Financial Results - Affirm Holdings is set to announce its earnings on February 6, 2025, with an expected EPS of -$ 0.21, representing a 625% decrease from the same quarter last year [2] - The consensus estimate for revenue is $803.48 million, indicating a 35.93% increase compared to the previous year [2] Annual Forecast - For the entire year, Zacks Consensus Estimates project an EPS of -$ 0.62 and revenue of $3.11 billion, reflecting changes of +62.87% and +33.73% respectively from the previous year [3] - Recent changes to analyst estimates for Affirm Holdings are noted, with positive revisions indicating analyst optimism about the company's business and profitability [3] Analyst Ratings and Market Trends - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5] - Over the past month, the Zacks Consensus EPS estimate for Affirm Holdings has decreased by 15.81%, and the company currently holds a Zacks Rank of 3 (Hold) [5] Industry Context - Affirm Holdings operates within the Financial Transaction Services industry, which is part of the Business Services sector and currently holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [6] - The Zacks Industry Rank measures the strength of individual industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [6]