Wall Street Analysts Think Affirm Holdings (AFRM) Is a Good Investment: Is It?

Core Viewpoint - The average brokerage recommendation (ABR) for Affirm Holdings (AFRM) is 1.61, indicating a consensus between Strong Buy and Buy, based on 23 brokerage firms' recommendations [2] Group 1: Brokerage Recommendations - Affirm Holdings has 16 Strong Buy recommendations, accounting for 69.6% of all recommendations from the 23 brokerage firms [2] - The ABR is calculated solely from brokerage recommendations, which may not always align with retail investors' interests due to potential biases from brokerage firms [6][10] Group 2: Zacks Rank vs. ABR - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with a current Zacks Rank of 1 (Strong Buy) for Affirm Holdings, indicating strong potential for price performance [8][13] - The Zacks Rank is more timely and reflects recent changes in earnings estimates, unlike the ABR, which may not be up-to-date [12] Group 3: Earnings Estimates - The Zacks Consensus Estimate for Affirm Holdings has increased by 60% over the past month to -$0.06, reflecting analysts' growing optimism about the company's earnings prospects [13] - The recent change in consensus estimates, along with other factors, has contributed to Affirm Holdings receiving a Zacks Rank 1 (Strong Buy) [14]