Affirm Holdings, Inc. AFRM is a digital and mobile-first commerce platform operator that has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes AFRM an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the year. Shares of AFRM have returned 91% against the 7% decline of the industry it belongs to and the 26% rally of the Zacks S&P 500 composite.

Affirm Holdings, Inc. Price

Affirm Holdings, Inc. price | Affirm Holdings, Inc. Quote

Solid Rank: AFRM currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.

Northward Estimate Revisions: Five estimates for fiscal 2024 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2024 bottom line has moved up 19.2% in the past 60 days.

Strong Growth Prospects: The Zacks Consensus Estimate for AFRM’s fiscal 2024 bottom line indicates a 40.7% contraction in loss on a year-over-year basis. The consensus estimate for the fiscal 2025 bottom line indicates an 18% contraction in loss on a year-over-year basis.

Growth Factors: AFRM is currently riding on growth in active merchant base and consumers, average transactions per consumer, and increased card activity through Affirm Card and single-use virtual debit cards. Increase in the volume of interest-bearing loans, recent pricing initiatives, increase in loan sales volume and servicing fee revenues are helping the company keep its top line in good shape. Expense management and a healthy top line have helped in improving the operating margin.

Other Stocks to Consider

A couple of other top-ranked stocks from the broader Zacks Business Services sector are Deluxe DLX and Omnicom Group OMC.

Deluxe currently carries a Zacks Rank of 2. It has a long-term earnings growth expectation of 12%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DLX delivered a trailing four-quarter earnings surprise of 23.3%, on average.

Omnicom Group currently carries a Zacks Rank of 2. It has a long-term earnings growth expectation of 5.5%. OMC delivered a trailing four-quarter earnings surprise of 3.2%, on average.

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Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Deluxe Corporation (DLX) : Free Stock Analysis Report

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

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