Affirm Holdings (AFRM) is a Top-Ranked Momentum Stock: Should You Buy?

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

Founded in 2012 and headquartered in San Francisco, CA, Affirm Holdings, Inc. is a financial technology company specializing in payment solutions that provide consumers with flexible, transparent installment loans — both interest-free and interest-bearing — at the point of sale. By partnering with a diverse range of merchants, Affirm enables customers to pay for purchases over time.

AFRM boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Affirm Holdings has seen some interesting price action recently; the stock is down 3.3% over the past one week and up 13.2% over the past four weeks. And in the last one-year period, AFRM has gained 148.6%. As for the stock's trading volume, 5,149,236 shares on average were traded over the last 20 days.

Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.02 to $0.05 per share. AFRM boasts an average earnings surprise of 102.2%.

Investors should take the time to consider AFRM for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.

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Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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