AFRM stock was slightly down in premarket trading at 23.37 as of 09:32 AM EDT Friday market open.
Even after Truist analyst Andrew Jeffrey reiterated a Buy rating on the provider of Buy Now, Pay Later, saying that the risk of the Consumer Financial Protection Bureaus proposal to start regulating BNPL is probably overdone, Affirms (NASDAQ:AFRM) stock fell 1.9% in Friday premarket trade.
The consumer watchdog recently made an announcement that expressed its concerns about how the quickly expanding financing products of BNPL lenders would negatively affect customers, specifically through unequal disclosures and protections generally.
In light of its best-in-class disclosure, consumer price, and lack of fees, Jeffrey sees no risk for AFRM, he wrote in a note to clients. As the industry leader and best-practices provider, Affirm will benefit from more standard oversight, disclosure, and data rules, according to Jeffrey, who also noted that Affirm (AFRM) is the best run BNPL company, delivering clear and transparent information.
Views from Zacks Equity Research on AFRM stock
Yesterdays trading day saw Affirm Holdings (AFRM) down 1.4% from the previous trading session to $23.99. This movement was slower than the S&P 500s 1.13% daily loss. The Nasdaq, a tech-heavy index, rose 0.16%, while the Dow fell 0.56%. Shares of the company that runs a digital commerce platform have fallen 34.93% as of today. The S&P 500 lost 7.59% during that time, while the Business Services sector dropped 8.77%.
As the deadline for Affirm Holdings next earnings report approaches, Wall Street will be watching for encouraging signs from the company. Affirm Holdings is anticipated to disclose earnings of -$0.72 per share on that day, which would be an 80% decrease from the prior year. According to the Zacks Consensus Estimate for revenue, net sales will total $360.72 million, up 33.9% from the same quarter last year.
For the entire year, according to our Zacks Consensus Estimates, analysts anticipate $1.7 billion in revenue and earnings of -$2.80 per share. These sums would represent variations of -11.55% and +26.32% from the previous year, respectively.
Affirm Holdings analyst expectations may have recently changed, so investors should take note. The most recent short-term business trends, which can change frequently, are often reflected in these modifications. Because of this, we can view favorable estimate revisions as an indication that the companys business outlook is improving.
Zacks Rank on AFRM stock
According to research, these estimate adjustments are directly tied to the momentum of the short-term share price. To capitalize on this, the Zacks Rank is a unique methodology that considers these estimate revisions and offers a usable ranking system.
From #1 (Strong Buy) to #5, the Zacks Rank scale rates stocks (Strong Sell). It has an impressive track record of success that has been independently audited, with its #1 stocks averaging +25% yearly returns since 1988. Within the last month, the Zacks Consensus EPS estimate has decreased by 53.33%. Currently, Affirm Holdings is ranked #3 by Zacks (Hold).
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Author: Jowi Kwasu
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