Core Insights - Affirm Holdings, Inc. (AFRM) has established a strong technology infrastructure that supports a significant increase in transaction volume, with approximately 358,000 active merchants as of March 31, 2025 [1] Company Performance - The company's revenue is closely linked to transaction volume, which saw a 46% year-over-year increase in Q3 of fiscal 2025 [2][8] - Affirm's 0% APR monthly installment GMV increased by 44% year-over-year in Q3 fiscal 2025, although this impacts interest margins negatively [3][8] - The company is focusing on attracting higher-quality borrowers through 0% APR plans, which can enhance conversion metrics and reduce risk [3] Competitive Landscape - Key competitors in the buy now, pay later (BNPL) market include PayPal Holdings, Inc. (PYPL) and Visa Inc. (V), both of which have a strong market presence [4] - PayPal processed 6 billion transactions in Q1 2025, with net revenues rising 1% year-over-year to $7.8 billion [5] - Visa's processed transactions increased by 9% year-over-year in Q2 fiscal 2025, with total revenues advancing 9% year-over-year [6] Valuation and Estimates - Affirm's shares have increased by 104.9% over the past year, outperforming the industry growth of 42.3% [7] - The forward price-to-sales ratio for AFRM is 5.38, which is below the industry average [10] - The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings suggests a 101.8% improvement year-over-year, with revenue growth projected at 37% [12]

Core Viewpoint - Michelin has received strong credit ratings from both Scope Ratings and Moody's, indicating a solid business risk profile and improving credit metrics [2][3]. Group 1: Credit Ratings - Scope Ratings affirmed Michelin's Long-Term Issuer Default Rating (IDR) of 'A' with a Stable outlook on July 11, 2025, reflecting a solid business risk profile and very strong credit metrics [2]. - Moody's affirmed its Long-Term rating of 'A2' with a Stable outlook on July 9, 2025, highlighting Michelin's attractive margins and strong brand recognition [3]. Group 2: Business Strengths - Michelin's strong credit ratings are supported by its unique market position, innovation capabilities, and brand recognition, which contribute to its attractive margins [3].

Group 1 - Affirm Holdings Inc (NASDAQ:AFRM) shares are down 1% to $64.06 following a downgrade from BTIG Research to "neutral" from "buy" due to increased competition from traditional lenders like Capital One Financial and Synchrony Financial [1] - The stock is experiencing its third consecutive daily drop after a rally that reached four-month highs earlier this month, with the 40-day moving average providing support at the $60 level [2] - Year-to-date, the equity has increased by 5% [2] Group 2 - In the options market, call volume remains high with 11,000 calls exchanged, while put volume has surged to 8,293, which is three times the typical volume [3] - The most popular options are the March 70 call and the July 63 put, with new positions being sold to open at the latter [3] - Short interest has decreased but still represents 5.3% of the stock's available float, requiring over two days to cover at the average trading pace [3]

Group 1: Company Performance - Affirm Holdings (AFRM) closed at $64.72, reflecting a -5.58% change from the previous day, which is less than the S&P 500's daily loss of 0.33% [1] - Over the past month, shares of Affirm Holdings have appreciated by 12.28%, outperforming the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07% [1] Group 2: Earnings Projections - The upcoming earnings release for Affirm Holdings is projected to show earnings per share (EPS) of $0.09, indicating a 164.29% increase from the same quarter last year [2] - Revenue is expected to reach $835.09 million, reflecting a 26.69% increase compared to the year-ago quarter [2] - For the full year, earnings are projected at $0.03 per share and revenue at $3.18 billion, representing changes of +101.8% and 0%, respectively, from the prior year [3] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Affirm Holdings indicate changing near-term business trends, with positive revisions suggesting analysts' confidence in business performance [4] - The Zacks Rank system, which includes estimate changes, currently ranks Affirm Holdings at 3 (Hold) [6] Group 4: Valuation Metrics - Affirm Holdings is trading at a Forward P/E ratio of 97.46, which is a premium compared to the industry average Forward P/E of 28.6 [7] - The company has a PEG ratio of 2.49, compared to the industry average PEG ratio of 2.21 [7] Group 5: Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 67, placing it in the top 28% of all industries [8]

Core Insights - Affirm Holdings, Inc. (AFRM) is focused on reinventing payments through a diverse merchant network, which has grown to approximately 358,000 active merchants as of March 31, 2025, up from around 292,000 the previous year [1][10] Merchant Network and Partnerships - The merchant partners of Affirm span various industries, including fashion, electronics, travel, and home and lifestyle, utilizing Affirm's buy now, pay later (BNPL) solutions to enhance average order values and customer conversion rates [2] - Recent partnerships include collaborations with Shopmonkey and Xsolla, extending payment solutions to auto repairs and game developers, while partnerships with Williams-Sonoma and KAYAK facilitated entry into the Canadian market [3] Financial Performance - In the first nine months of fiscal 2025, Affirm's gross merchandise volume (GMV) reached $26.3 billion, reflecting a 36% year-over-year increase, with expectations for fiscal 2025 GMV to be between $35.7 billion and $36 billion, indicating a 34.8% rise at the midpoint [5][10] - Merchant network revenues improved by 30% year-over-year during the same period [10] Competitive Landscape - Key competitors in the BNPL space include PayPal Holdings, Inc. (PYPL) and Sezzle Inc. (SEZL), with PayPal reporting over 36 million merchants globally and a 1% year-over-year revenue increase to $7.8 billion [6][7] - Sezzle's merchant base exceeds 40,000 businesses, with total revenues more than doubling year-over-year to $104.9 million, supported by a 64.1% rise in GMV [8] Stock Performance and Valuation - Affirm's stock has surged 132.1% over the past year, outperforming the industry growth of 41.2% [9] - The company trades at a forward price-to-sales ratio of 5.61, which is below the industry average of 5.88 [12] Earnings Estimates - The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings suggests a 101.8% improvement from the previous year, with revenue growth projected at 37% year-over-year [14]

Core Insights - Affirm Holdings, Inc. (AFRM) is adapting its strategy in the competitive Buy Now, Pay Later (BNPL) market by focusing on transparency and flexible financing options for both high-ticket and low-ticket purchases [1][4] Group 1: Company Strategy and Performance - Affirm is shifting its focus from primarily financing larger purchases to collaborating with retailers for smaller, everyday items, such as Costco and World Market, to attract a broader audience [2][8] - Total transactions in Q3 FY25 increased by 45.6% year over year, reaching 31.3 million, driven by a significant rise in repeat customer transactions [2][8] - The number of active merchants for Affirm reached 358,000, marking a 23% year-over-year increase, as the company invests in machine learning-driven underwriting and real-time decision-making [3][8] Group 2: Competitive Landscape - Competitors like PayPal and Block are also active in the BNPL space, with PayPal's net revenues rising 1% year over year to $7.8 billion in Q1 2025, and Block's Gross Payment Volume increasing by 4.4% year over year [5][6] - PayPal's offerings, such as "Pay Monthly" and "Pay in 4," directly compete with Affirm's business model, targeting both high-ticket and low-ticket purchases [5] Group 3: Financial Metrics and Valuation - Affirm's stock has appreciated by 133.3% over the past year, significantly outperforming the industry average increase of 38.3% [7] - The company trades at a forward price-to-sales ratio of 5.66, which is below the industry average of 5.81 [9] - The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings suggests a remarkable growth of 101.8% compared to the previous year [10]

Company Performance - Affirm Holdings (AFRM) experienced a daily increase of +1.98%, closing at $69.07, outperforming the S&P 500's gain of 0.61% [1] - Prior to the latest trading session, shares had risen by 11.03%, surpassing the Computer and Technology sector's increase of 5.6% and the S&P 500's increase of 3.85% [1] Upcoming Earnings - The upcoming earnings disclosure is expected to show an EPS of $0.09, representing a significant increase of 164.29% compared to the same quarter last year [2] - Revenue is projected to reach $833.89 million, reflecting a 26.5% increase from the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $0.03 per share and revenue of $3.18 billion, indicating a year-over-year earnings increase of +101.8% and no change in revenue [3] Analyst Estimates - Recent changes in analyst estimates for Affirm Holdings are crucial for investors, as positive revisions indicate optimism regarding the company's business and profitability [3][4] - The Zacks Rank system, which incorporates these estimate changes, currently assigns Affirm Holdings a rank of 3 (Hold) [5] Valuation Metrics - Affirm Holdings has a Forward P/E ratio of 96.3, significantly higher than the industry average Forward P/E of 28.96 [6] - The company also has a PEG ratio of 2.46, compared to the Internet - Software industry's average PEG ratio of 2.22 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 62, placing it in the top 26% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Affirm Holdings has seen significant interest in its stock, with a recent performance of +16.1% over the past month, outperforming the S&P 500 composite's +3.9% and the Zacks Internet - Software industry's +2.7% [2] Earnings Estimates - For the current quarter, Affirm Holdings is expected to report earnings of $0.09 per share, reflecting a year-over-year increase of +164.3% [5] - The consensus earnings estimate for the current fiscal year stands at $0.03, indicating a year-over-year change of +101.8% [5] - For the next fiscal year, the consensus earnings estimate is $0.70, showing no change from the previous year [6] - The Zacks Rank for Affirm Holdings is 3 (Hold), based on recent changes in earnings estimates and other related factors [7] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $833.89 million, representing a year-over-year increase of +26.5% [11] - For the current fiscal year, the sales estimate is $3.18 billion, indicating a +37% change, while the next fiscal year's estimate is $3.91 billion, reflecting a +23% change [11] Last Reported Results - In the last reported quarter, Affirm Holdings generated revenues of $783.14 million, a year-over-year increase of +35.9% [12] - The EPS for the same period was $0.01, compared to -$0.43 a year ago, with an EPS surprise of +111.11% [12] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times [13] Valuation - Affirm Holdings is graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [15][16]

Core Insights - Affirm Holdings, Inc. (AFRM) shares have increased by 145.7% over the past year, outperforming the industry growth of 35.1% and the S&P 500's gain of 12.3% [2] - The company's strong performance is attributed to product innovation, strategic execution, and an expanding base of consumers and merchants [2] Financial Performance - In fiscal Q3 2025, 94% of transactions were from repeat customers, indicating the success of Affirm's short-term payment plans [7] - Total transactions rose by 45.6% year-over-year to 31.3 million in the last reported quarter [8] - The Zacks Consensus Estimate for fiscal 2025 earnings suggests a 101.8% year-over-year improvement to 3 cents per share, with fiscal 2026 earnings expected to reach 73 cents [14] Business Strategy - Affirm is focusing on driving repeat usage as a sustainable growth strategy, which is more cost-effective than customer acquisition [6] - The company is expanding its merchant mix to include essential categories like food, travel, and subscriptions, enhancing daily engagement [8] - Affirm is scaling operations internationally, with plans to enter France, Germany, and the Netherlands through a partnership with Shopify [10] Product Development - Affirm's model provides value to merchants by reducing cart abandonment and increasing average order value, while offering consumers flexible payment options [12] - The company is investing in debit solutions and B2B tools to broaden its product ecosystem and increase transaction frequency [13] Market Position - Affirm is trading at 5.68X forward 12-month sales, slightly below the industry average of 5.85X, but above its three-year median of 3.59X [15] - The competitive landscape is intensifying, with legacy players like PayPal and Block expanding aggressively in the BNPL space [20]

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][2] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance [2][3] Zacks Style Scores - Each stock is rated from A to F based on its value, growth, and momentum, with A being the highest score indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Cash Flow [3] - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate revisions [5] - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down their choices [9] Investment Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks, such as 4 (Sell) or 5 (Strong Sell), should be approached with caution, even if they have high Style Scores [11] Company Spotlight: Affirm Holdings - Affirm Holdings, Inc. is a financial technology company that offers flexible installment loans at the point of sale, partnering with various merchants [12] - Currently rated 3 (Hold) on the Zacks Rank, Affirm has a VGM Score of B and a Momentum Style Score of B, with shares increasing by 24.2% over the past four weeks [12][13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.12 to $0.03 per share, and an average earnings surprise of 102.2% [13]