All You Need to Know About Affirm Holdings (AFRM) Rating Upgrade to Strong Buy

Core Viewpoint - Affirm Holdings (AFRM) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on a company's changing earnings picture, which is crucial for near-term stock price movements [2][4]. - Rising earnings estimates for Affirm Holdings indicate an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Affirm Holdings' upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - Analysts have raised their earnings estimates for Affirm Holdings, with the Zacks Consensus Estimate for the fiscal year ending June 2025 projected at -$0.59 per share, reflecting a year-over-year change of 64.7% [8]. - Over the past three months, the consensus estimate has increased by 3.7%, indicating positive sentiment among analysts [8].