Affirm Holdings, Inc. (AFRM) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Affirm Holdings (AFRM)? Shares have been on the move with the stock up 39.2% over the past month. The stock hit a new 52-week high of $80.72 in the previous session. Affirm Holdings has gained 32.5% since the start of the year compared to the 12.9% move for the Zacks Business Services sector and the 9.2% return for the Zacks Financial Transaction Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 6, 2025, Affirm Holdings reported EPS of $0.23 versus consensus estimate of $-0.2 while it beat the consensus revenue estimate by 7.74%.For the current fiscal year, Affirm Holdings is expected to post earnings of -$0.18 per share on $3.18 billion in revenues. This represents an 89.22% change in EPS on a 37.03% change in revenues. For the next fiscal year, the company is expected to earn $0.62 per share on $3.94 billion in revenues. This represents a year-over-year change of 442.59% and 23.64%, respectively.Valuation MetricsAffirm Holdings may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Affirm Holdings has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Affirm Holdings currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Affirm Holdings meets the list of requirements. Thus, it seems as though Affirm Holdings shares could have a bit more room to run in the near term.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks