Bank of New York Mellon Corp lessened its position in shares of Affirm Holdings, Inc. (NASDAQ:AFRM – Free Report) by 17.9% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,023,643 shares of the company’s stock after selling 223,489 shares during the quarter. Bank of New York Mellon Corp owned about 0.31% of Affirm worth $46,903,000 at the end of the most recent quarter.
Several other hedge funds have also added to or reduced their stakes in AFRM. Greenline Wealth Management LLC bought a new stake in shares of Affirm during the fourth quarter worth approximately $26,000. Syntegra Private Wealth Group LLC acquired a new stake in shares of Affirm during the first quarter worth $28,000. Triumph Capital Management acquired a new stake in shares of Affirm during the third quarter worth $31,000. CoreCap Advisors LLC grew its position in shares of Affirm by 431.3% during the 4th quarter. CoreCap Advisors LLC now owns 441 shares of the company’s stock worth $33,000 after buying an additional 358 shares during the period. Finally, Strive Financial Group LLC bought a new stake in shares of Affirm in the 4th quarter valued at about $33,000. Institutional investors own 69.29% of the company’s stock.
Insider Buying and Selling at Affirm In related news, COO Michael Linford sold 100,000 shares of the company’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the completion of the transaction, the chief operating officer directly owned 117,984 shares in the company, valued at $9,443,439.36. This represents a 45.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Noel Bertram Watson sold 2,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $65.00, for a total transaction of $130,000.00. Following the completion of the transaction, the director directly owned 36,076 shares of the company’s stock, valued at approximately $2,344,940. The trade was a 5.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is owned by corporate insiders.
Affirm Price Performance AFRM stock opened at $70.23 on Friday. The company’s 50-day moving average price is $73.92 and its two-hundred day moving average price is $63.76. Affirm Holdings, Inc. has a 12 month low of $42.10 and a 12 month high of $100.00. The company has a quick ratio of 11.32, a current ratio of 11.32 and a debt-to-equity ratio of 2.39. The firm has a market cap of $23.52 billion, a P/E ratio of 63.85, a P/E/G ratio of 2.90 and a beta of 3.67.
Affirm (NASDAQ:AFRM – Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.17 by $0.13. The business had revenue of $943.95 million during the quarter, compared to the consensus estimate of $995.27 million. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The company’s revenue was up 32.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.01 earnings per share. On average, analysts anticipate that Affirm Holdings, Inc. will post 1.23 earnings per share for the current fiscal year.
Analysts Set New Price Targets Several brokerages have issued reports on AFRM. UBS Group increased their price target on Affirm from $78.00 to $82.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Sanford C. Bernstein started coverage on shares of Affirm in a research note on Tuesday. They issued an “outperform” rating and a $100.00 price target on the stock. Wells Fargo & Company upped their price target on shares of Affirm from $89.00 to $96.00 and gave the company an “overweight” rating in a report on Wednesday, July 8th. Truist Financial increased their price objective on shares of Affirm from $80.00 to $83.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Stephens upped their target price on shares of Affirm from $55.00 to $75.00 and gave the stock an “equal weight” rating in a research note on Friday, May 8th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $92.74.
Check Out Our Latest Stock Analysis on Affirm
Affirm Company Profile (Free Report)
Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.
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Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $73.97, moving -1% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.14%. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.57%.
Shares of the operator of digital commerce platform witnessed a gain of 4.02% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.82%, and the S&P 500's gain of 0.25%.
The upcoming earnings release of Affirm Holdings will be of great interest to investors. The company is predicted to post an EPS of $0.33, indicating a 65% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, up 26.39% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $4.21 billion. These totals would mark changes of +720% and +30.62%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Affirm Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.2% rise in the Zacks Consensus EPS estimate. Affirm Holdings presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Affirm Holdings is presently trading at a Forward P/E ratio of 43.6. Its industry sports an average Forward P/E of 19.55, so one might conclude that Affirm Holdings is trading at a premium comparatively.
One should further note that AFRM currently holds a PEG ratio of 3.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.06 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Affirm Holdings (AFRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this operator of digital commerce platform have returned +4.3% over the past month versus the Zacks S&P 500 composite's -0.6% change. The Zacks Internet - Software industry, to which Affirm Holdings belongs, has gained 8.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Affirm Holdings is expected to post earnings of $0.33 per share, indicating a change of +65% from the year-ago quarter. The Zacks Consensus Estimate has changed +7.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.23 points to a change of +720% from the prior year. Over the last 30 days, this estimate has changed +1.2%.
For the next fiscal year, the consensus earnings estimate of $1.71 indicates a change of +39.2% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed +1.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Affirm Holdings is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Affirm Holdings, the consensus sales estimate for the current quarter of $1.11 billion indicates a year-over-year change of +26.4%. For the current and next fiscal years, $4.21 billion and $5.34 billion estimates indicate +30.6% and +26.7% changes, respectively.
Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $0.3 for the same period compares with $0.01 a year ago.
Compared to the Zacks Consensus Estimate of $997.92 million, the reported revenues represent a surprise of +4.09%. The EPS surprise was +76.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Affirm Holdings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Allspring Global Investments Holdings LLC lifted its holdings in Affirm Holdings, Inc. (NASDAQ:AFRM – Free Report) by 23.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,577,264 shares of the company’s stock after acquiring an additional 303,037 shares during the period. Allspring Global Investments Holdings LLC owned approximately 0.47% of Affirm worth $71,829,000 as of its most recent SEC filing.
A number of other hedge funds have also made changes to their positions in the business. Royal Bank of Canada raised its holdings in shares of Affirm by 2.1% during the 1st quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock valued at $8,748,000 after buying an additional 3,892 shares during the period. Empowered Funds LLC raised its stake in shares of Affirm by 90.7% during the first quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock valued at $762,000 after purchasing an additional 8,014 shares during the period. Focus Partners Wealth purchased a new stake in shares of Affirm during the first quarter valued at approximately $243,000. EverSource Wealth Advisors LLC lifted its position in shares of Affirm by 18.5% during the second quarter. EverSource Wealth Advisors LLC now owns 2,738 shares of the company’s stock worth $189,000 after purchasing an additional 427 shares in the last quarter. Finally, First Trust Advisors LP lifted its position in shares of Affirm by 44.8% during the second quarter. First Trust Advisors LP now owns 191,525 shares of the company’s stock worth $13,242,000 after purchasing an additional 59,297 shares in the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.
Affirm Stock Down 4.7% Shares of AFRM opened at $76.07 on Friday. The company has a 50-day simple moving average of $73.19 and a 200-day simple moving average of $63.82. The firm has a market capitalization of $25.48 billion, a P/E ratio of 69.15, a P/E/G ratio of 3.23 and a beta of 3.67. The company has a debt-to-equity ratio of 2.39, a quick ratio of 11.32 and a current ratio of 11.32. Affirm Holdings, Inc. has a 52 week low of $42.10 and a 52 week high of $100.00.
Affirm (NASDAQ:AFRM – Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.13. The business had revenue of $943.95 million for the quarter, compared to the consensus estimate of $995.27 million. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The firm’s revenue for the quarter was up 32.7% compared to the same quarter last year. During the same period last year, the business earned $0.01 earnings per share. On average, equities research analysts expect that Affirm Holdings, Inc. will post 1.23 earnings per share for the current year.
Insider Transactions at Affirm In other news, Director Noel Bertram Watson sold 2,000 shares of the firm’s stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total value of $130,000.00. Following the completion of the sale, the director directly owned 36,076 shares in the company, valued at approximately $2,344,940. This trade represents a 5.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Linford sold 100,000 shares of the business’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the completion of the transaction, the chief operating officer directly owned 117,984 shares of the company’s stock, valued at approximately $9,443,439.36. This represents a 45.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is currently owned by company insiders.
Wall Street Analysts Forecast Growth A number of equities research analysts have weighed in on the company. Morgan Stanley set a $79.00 price objective on Affirm and gave the company an “overweight” rating in a research note on Sunday, May 10th. Wells Fargo & Company increased their target price on Affirm from $89.00 to $96.00 and gave the company an “overweight” rating in a research note on Wednesday, July 8th. Citigroup lifted their price target on shares of Affirm from $100.00 to $115.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Affirm in a research note on Wednesday, June 24th. Finally, Citizens Jmp reduced their price objective on shares of Affirm from $105.00 to $85.00 and set a “market outperform” rating on the stock in a research note on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, Affirm currently has an average rating of “Moderate Buy” and an average price target of $92.04.
Get Our Latest Analysis on AFRM
Affirm Company Profile (Free Report)
Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AFRM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Affirm Holdings (AFRM - Free Report) ended the recent trading session at $81.93, demonstrating a -1.79% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 1.55%.
The operator of digital commerce platform's stock has climbed by 26.07% in the past month, exceeding the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The upcoming earnings release of Affirm Holdings will be of great interest to investors. In that report, analysts expect Affirm Holdings to post earnings of $0.33 per share. This would mark year-over-year growth of 65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 26.39% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.23 per share and a revenue of $4.21 billion, indicating changes of +720% and +30.62%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Affirm Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.52% increase. Affirm Holdings is currently a Zacks Rank #3 (Hold).
With respect to valuation, Affirm Holdings is currently being traded at a Forward P/E ratio of 48.05. For comparison, its industry has an average Forward P/E of 19.66, which means Affirm Holdings is trading at a premium to the group.
Also, we should mention that AFRM has a PEG ratio of 3.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Affirm is now a free cash flow machine, poised to generate over $1 billion FCF in the next twelve months. AFRM is expected to deliver 24%-25% revenue growth in fiscal 2027, with annual revenues surpassing $5 billion. Profitability is accelerating: management has consistently raised non-GAAP operating margin guidance, targeting 29% next fiscal year.
Affirm Holdings (AFRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this operator of digital commerce platform have returned +26%, compared to the Zacks S&P 500 composite's +2.2% change. During this period, the Zacks Internet - Software industry, which Affirm Holdings falls in, has gained 7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Affirm Holdings is expected to post earnings of $0.34 per share, indicating a change of +70% from the year-ago quarter. The Zacks Consensus Estimate has changed +7.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.24 points to a change of +726.7% from the prior year. Over the last 30 days, this estimate has changed +0.6%.
For the next fiscal year, the consensus earnings estimate of $1.7 indicates a change of +37.8% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed +0.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Affirm Holdings.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Affirm Holdings, the consensus sales estimate of $1.11 billion for the current quarter points to a year-over-year change of +26.4%. The $4.21 billion and $5.32 billion estimates for the current and next fiscal years indicate changes of +30.6% and +26.3%, respectively.
Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $0.3 for the same period compares with $0.01 a year ago.
Compared to the Zacks Consensus Estimate of $997.92 million, the reported revenues represent a surprise of +4.09%. The EPS surprise was +76.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Affirm Holdings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Affirm Holdings (AFRM - Free Report) Founded in 2012 and headquartered in San Francisco, CA, Affirm Holdings, Inc. is a financial technology company specializing in payment solutions that provide consumers with flexible, transparent installment loans — both interest-free and interest-bearing — at the point of sale. By partnering with a diverse range of merchants, Affirm enables customers to pay for purchases over time.
AFRM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. AFRM has a Momentum Style Score of A, and shares are up 28.4% over the past four weeks.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.11 to $1.24 per share. AFRM boasts an average earnings surprise of +74.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AFRM should be on investors' short list.
Affirm Holdings (AFRM - Free Report) closed the most recent trading day at $85.78, moving +1.42% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.12%.
Prior to today's trading, shares of the operator of digital commerce platform had gained 32.97% outpaced the Computer and Technology sector's loss of 6.12% and the S&P 500's loss of 0.9%.
The upcoming earnings release of Affirm Holdings will be of great interest to investors. It is anticipated that the company will report an EPS of $0.34, marking a 70% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 26.19% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.24 per share and revenue of $4.21 billion, indicating changes of +726.67% and +30.59%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Affirm Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.63% higher. Affirm Holdings is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Affirm Holdings is presently being traded at a Forward P/E ratio of 49.64. This valuation marks a premium compared to its industry average Forward P/E of 19.82.
We can also see that AFRM currently has a PEG ratio of 3.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.08.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Affirm remains a 'Strong Buy' as BNPL adoption grows and the total addressable market is set for continual expansion. AFRM delivered 22% Y/Y active customer growth in Q3 '26 and surpassed $1B in quarterly revenue for the second consecutive quarter, driven by rising transactions per user. Shares have surged 89% since March, yet at 18x forward P/E, AFRM remains attractively valued versus some Fintech peers and its growth outlook.
People walk past a billboard built for the upcoming NATO summit in Ankara, Turkey, July 1, 2026. REUTERS/Efekan Akyuz Purchase Licensing Rights, opens new tab
BRUSSELS, July 3 (Reuters) - NATO leaders including U.S. President Donald Trump are set to affirm an "ironclad commitment" to collective defence under the alliance's Article 5 pact at a summit in Ankara next week, according to a text approved by NATO ambassadors on Friday and reviewed by Reuters.
NATO members are also set to pledge €70 billion ($80 billion) in military assistance to Ukraine for 2026 and "at least equivalent levels" of support in 2027, according to the declaration, which still needs final approval from the leaders at the summit.
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"We ... have gathered in Ankara to reaffirm our ironclad commitment to our collective defence under Article 5 of the Washington Treaty and to the transatlantic bond. An attack on one is an attack on all," says the declaration for the summit, which takes place on July 7 and 8.
Trump has frequently railed against NATO and its members, accusing them of not spending enough on defence and relying on the United States to protect Europe.
After clashing with European leaders over the U.S.-Israeli war against Iran, Trump cast doubt on the U.S. commitment to NATO's mutual defence pact and even said he was considering quitting the alliance.
But the text, approved by the ambassadors of all NATO's 32 members including the United States, suggests the U.S. president is willing to set aside those ideas, at least for now.
The declaration says Russia poses "a long-term threat" to "Euro-Atlantic security and stability" and says NATO's European members and Canada are delivering on their commitment at last year's summit in The Hague to increase defence spending.
"We are building the future: a stronger Europe in a stronger NATO," the text says. "European Allies and Canada, working with the United States, are assuming greater responsibility for the Alliance’s defence."
The text also states that "Allies reiterate that Iran must never have a nuclear weapon and call on Iran to fully respect freedom of navigation in the Strait of Hormuz".
($1 = 0.8737 euros)
Reporting by Andrew Gray and Lili Bayer Editing by Bart Meijer and Peter Graff
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Andrew Gray is Reuters' European Affairs Editor. Based in Brussels, he covers NATO and the European Union and leads a pan-European team of reporters focused on diplomacy, defence and security. A journalist for almost 30 years, he has previously been based in the UK, Germany, Geneva, the Balkans, West Africa and Washington, where he reported on the Pentagon. He covered the Iraq war in 2003 and contributed a chapter to a Reuters book on the conflict. He has also worked at Politico Europe as a senior editor and podcast host, served as the main editor for a fellowship programme for journalists from the Balkans, and contributed to the BBC's From Our Own Correspondent radio show.
Key Takeaways Affirm will offer BNPL across Bed Bath & Beyond, Overstock and buybuy BABY for eligible shoppers.AFRM had about 515,000 active merchants as of March 31, 2026, up 43.8% year over year.AFRM's Q3 FY26 GMV rose 35% and total transactions increased 45% year over year. Affirm Holdings, Inc. (AFRM - Free Report) has entered a new partnership with Bed Bath & Beyond, making its buy now, pay later (BNPL) solution available to eligible shoppers across the retailer's brands, including Bed Bath & Beyond, Overstock and buybuy BABY. Customers can choose to pay for purchases in biweekly or monthly installments with no late or hidden fees, offering greater payment flexibility while shopping for home-related products.
The agreement expands Affirm's presence in the home retail market, where purchases often involve a higher ticket size than everyday discretionary spending. By giving consumers more payment choices at checkout, the company could attract new users and encourage higher transaction activity. The partnership also allows Affirm to reach shoppers during key life events, such as moving into a new home or preparing for a growing family.
The addition further strengthens AFRM's merchant portfolio. As of March 31, 2026, the company’s active merchants were around 515,000, up 43.8% year over year. Expanding relationships with well-known brands enhances the company's reach, increases consumer touchpoints and supports growth in gross merchandise volume (GMV). In the third quarter of fiscal 2026, GMV grew 35% year over year, while total transactions increased 45%, highlighting strong platform engagement.
As demand for flexible payment solutions continues to grow, adding established retailers can support broader platform adoption and higher payment volumes. The Bed Bath & Beyond partnership aligns with Affirm's strategy of expanding its merchant network and should strengthen its long-term growth opportunities in the evolving digital payments landscape.
How Are Competitors Faring?Some of AFRM’s competitors in the BNPL space are PayPal Holdings, Inc. (PYPL - Free Report) and Visa Inc. (V - Free Report) .
PayPal reported 439 million active accounts in the first quarter of 2026, which rose 1% year over year. Its net revenues increased 7% year over year to $8.4 billion in the same quarter. Additionally, PayPal’s total payment volume increased 11% year over year in the first quarter of 2026.
Visa’s processed transactions increased 9% year over year in the second quarter of fiscal 2026. Visa’s payment volume rose 9% year over year in the second quarter of fiscal 2026, along with 17% growth in net revenues.
Affirm’s Price Performance, Valuation & EstimatesOver the past year, AFRM’s shares gained 21.2% against the industry’s fall of 19.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 6.66, above the industry average of 3.66.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies 726.7% growth from the year-ago period. The consensus mark for fiscal 2026 revenues indicates 30.6% year-over-year growth.
Image Source: Zacks Investment Research
Affirm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SAN FRANCISCO--(BUSINESS WIRE)--A home comes together one decision at a time, from the everyday essentials people rely on to the larger purchases that make a space more comfortable, functional, and personal. Now, eligible customers shopping across Bed Bath & Beyond brands – including Overstock, Bed Bath & Beyond, and buybuy BABY – can choose Affirm (NASDAQ: AFRM) at online checkout and pay over time in biweekly or monthly payments with no hidden fees, late fees, or compounding interest. Just total clarity every step of the way.
“Bed Bath & Beyond is where customers come for everything home, from the everyday essentials, to the perfect seasonal touches, to the projects that transform a room,” said Lisa Foley, Chief Operating Officer, Bed Bath & Beyond. “Affirm gives them the flexibility to pay their way and to bring their vision to life on a timeline that works for them.”
“Homes change as life changes,” said Pat Suh, SVP of Revenue at Affirm. “Whether someone is moving into their first apartment, preparing for a new baby, or creating space for a growing family, Affirm gives customers a clear, transparent way to pay over time and choose a payment plan that fits their budget.”
Bed Bath & Beyond joins Affirm’s global network of nearly 515,000 merchant partners, including leading brands like Amazon, Costco, StubHub, REVOLVE, Net-a-Porter, StockX, and many more.
About Bed Bath & Beyond
Bed Bath & Beyond (NYSE: BBBY) is building a connected home ecosystem designed to make shopping for, managing and caring for a home simpler and more affordable. Through a portfolio of trusted brands including Bed Bath & Beyond, buybuy BABY, Overstock, Kirkland’s and, upon completion of the merger, The Container Store, the Company serves customers through an integrated omnichannel experience spanning retail, home products, services, financing, protection and installation solutions.
The Company’s technology and data platform helps create more personalized experiences for customers across every stage of home ownership, while its expanding ecosystem of brands and services is designed to deliver greater convenience, accessibility and value.
About Affirm
Affirm's mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency, and putting people first – we empower millions of consumers to spend and save responsibly and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.
AFRM-PA
Payment options through Affirm are subject to an eligibility check and are provided by these lending partners: affirm.com/lenders. Options depend on your purchase amount, and a down payment may be required. CA residents: Loans by Affirm Loan Services, LLC are made or arranged pursuant to a California Financing Law license. For licenses and disclosures, see affirm.com/licenses. Affirm Loan Services, LLC, NMLS ID 1479506
Affirm Holdings (AFRM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this operator of digital commerce platform have returned +7.9% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Internet - Software industry, to which Affirm Holdings belongs, has lost 5.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Affirm Holdings is expected to post earnings of $0.36 per share for the current quarter, representing a year-over-year change of +80%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $1.25 for the current fiscal year indicates a year-over-year change of +733.3%. This estimate has changed +0.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.69 indicates a change of +35.8% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed -0.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Affirm Holdings is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Affirm Holdings, the consensus sales estimate of $1.1 billion for the current quarter points to a year-over-year change of +26%. The $4.21 billion and $5.33 billion estimates for the current and next fiscal years indicate changes of +30.6% and +26.5%, respectively.
Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $0.3 for the same period compares with $0.01 a year ago.
Compared to the Zacks Consensus Estimate of $997.92 million, the reported revenues represent a surprise of +4.09%. The EPS surprise was +76.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Affirm Holdings is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Affirm adds Backcountry, expanding its footprint in the outdoor recreation market.More merchant partnerships can boost GMV, transactions and user engagement.Flexible payment options may increase conversion rates and average order values. Affirm Holdings, Inc. (AFRM - Free Report) recently announced a partnership with outdoor gear retailer Backcountry, giving shoppers a new way to pay for purchases over time at checkout. Customers buying outdoor equipment, apparel, footwear and adventure gear can select Affirm and split purchases into multiple installments, depending on eligibility.
The offering includes transparent payment schedules, with no late fees or hidden charges. The move expands Affirm’s presence in the outdoor recreation category and adds another merchant to its growing network. AFRM’s active merchant count jumped 44% year over year in the third quarter of fiscal 2026 to 515,000. For Backcountry, the partnership provides customers with added payment flexibility, especially for higher-ticket purchases that can make outdoor activities more accessible.
Outdoor gear purchases can be expensive, particularly for premium equipment and seasonal adventures. By adding Affirm, Backcountry lowers the upfront cost barrier for customers while maintaining pricing transparency. The partnership can improve conversion rates, encourage larger purchases and attract shoppers who want flexibility without relying on traditional credit cards.
The partnership could support higher gross merchandise volume (GMV) for Affirm by generating additional transaction activity. The company’s GMV rose 35% year over year to $11.6 billion in the third quarter of fiscal 2026. It expects to generate GMV of $49.265-$49.565 billion for fiscal 2026.
More merchant integrations also strengthen Affirm’s network effect, helping the company acquire users and increase engagement across categories. For Backcountry, offering AFRM’s BNPL options may lift average order values.
AFRM’s YTD Price PerformanceOver the year-to-date period, shares of Affirm have gained 5.2% against the 16.7% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key PicksAffirm currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader payments space are Klarna Group plc (KLAR - Free Report) , Paymentus Holdings, Inc. (PAY - Free Report) and Remitly Global, Inc. (RELY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Klarna’s current-year earnings indicates a 105.1% year-over-year improvement. KLAR has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $4.44 billion, indicating 26.5% year-over-year growth.
The Zacks Consensus Estimate for Paymentus’ current-year earnings indicates a 19.7% year-over-year jump. PAY beat earnings estimates in each of the trailing four quarters, with the average surprise being 12%. The consensus estimate for current-year revenues implies 19.9% year-over-year growth.
The consensus estimate for Remitly Global’s current-year earnings indicates a 331.3% year-over-year surge to $1.38 per share. It has witnessed one upward estimate revision and no downward movement over the past 60 days. The consensus estimate for RELY’s current-year revenues is pegged at $1.97 billion, implying 20.4% year-over-year growth.
The best outdoor experiences often start long before the trailhead, with the gear that helps make them possible. That's why Backcountry and [url="]Affirm[/url]
Affirm Holdings (AFRM) fell 1.78% in premarket after Morgan Stanley downgraded the buy-now-pay-later company from Overweight to Equalweight, setting a $79 price
SALT LAKE CITY & SAN FRANCISCO--(BUSINESS WIRE)--The best outdoor experiences often start long before the trailhead, with the gear that helps make them possible. That's why Backcountry and Affirm (NASDAQ: AFRM) have partnered to give outdoor enthusiasts a clearer, more flexible way to pay for the purchases fueling their next adventure. Whether they're gearing up for ski season, upgrading a mountain bike, or replacing camping gear before their next trip, eligible shoppers at Backcountry and its.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Affirm Holdings (AFRM - Free Report) Founded in 2012 and headquartered in San Francisco, CA, Affirm Holdings, Inc. is a financial technology company specializing in payment solutions that provide consumers with flexible, transparent installment loans — both interest-free and interest-bearing — at the point of sale. By partnering with a diverse range of merchants, Affirm enables customers to pay for purchases over time.
AFRM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. AFRM has a Momentum Style Score of B, and shares are up 5.4% over the past four weeks.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.16 to $1.25 per share. AFRM boasts an average earnings surprise of +74.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AFRM should be on investors' short list.
Affirm Holdings, Inc. (AFRM - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, AFRM's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
AFRM has rallied 13.3% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates AFRM could be poised for a breakout.
The bullish case only gets stronger once investors take into account AFRM's positive earnings outlook for the current quarter. There have been 10 upward revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors may want to watch AFRM for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
Key Takeaways Affirm's expanding ecosystem and card growth are driving stronger user engagement.Earnings estimates and GMV outlook point to continued momentum for AFRM.Rising leverage and higher credit-loss provisions remain risks to watch. Shares of Affirm Holdings, Inc. (AFRM - Free Report) have climbed 13.3% over the past month, handily beating the broader industry, which slipped 2.6%, while the S&P 500 was little changed. The rally reflects growing confidence in the company’s growth prospects, improving profitability and an expanding ecosystem. Among major buy now, pay later (BNPL) peers, PayPal Holdings, Inc. (PYPL - Free Report) has fallen 3.9% during the same period, while Klarna Group plc (KLAR - Free Report) has gained 13.7%.
Price Performance – AFRM, PYPL, KLAR, Industry & S&P 500 Image Source: Zacks Investment Research
Let’s look at its growth drivers.
AFRM’s New Initiatives Are Opening More DoorsAffirm’s newer offerings are beginning to play a bigger role in its growth story. The Affirm Card, digital wallet integrations, agentic commerce initiatives and the recently launched Affirm Edge are creating additional ways for customers to use the platform. Active cardholders reached 4.4 million in the fiscal third quarter, while card GMV alone soared 146% year over year, helped by the company’s cash-flow underwriting model.
Affirm also strengthened its relationship with Google by integrating its BNPL services to Google Search, AI Mode and the Gemini app through Google Pay. The move expands its reach and could drive higher transaction volumes over time.
Funding capacity also continues to improve. Earlier this month, Affirm expanded its partnership with Canada Pension Plan Investment Board. The agreement is expected to support roughly $8 billion in consumer loan volume over the next two years, underscoring institutional confidence in the company’s underwriting and credit performance.
AFRM Building Scale Across Consumers and MerchantsDespite uncertainty in the broader economy, Affirm continues to deepen its presence through partnerships, product innovation and a growing customer base. These efforts are expanding its addressable market and reducing reliance on any single growth driver.
Active consumers rose 22% year over year to 26.8 million in the fiscal third quarter. Usage is spreading beyond large purchases into categories such as groceries, fuel, travel and subscriptions, making the platform more relevant to everyday spending.
Transactions increased 45% to 45.3 million in the latest quarter. Repeat users accounted for about 96% of total transactions, showing that customers continue to come back. Gross merchandise volume rose 35% to $11.6 billion. For fiscal 2026, management expects GMV between $49.265 billion and $49.565 billion. It has also outlined a medium-term goal of reaching $100 billion in annual GMV, supported by at least 25% yearly growth.
Merchant adoption is also gaining momentum. Active merchants climbed 44% from a year ago to 515,000 as of March 31, 2026, reflecting steady demand for flexible payment options.
Earnings Outlook for AFRM Remains BrightThe Zacks Consensus Estimate for fiscal 2026 earnings of $1.25 per share indicates a 733.3% year-over-year surge, while the estimate for fiscal 2027 earnings implies further growth of 35.6%. Moreover, the consensus mark for fiscal 2026 and 2027 revenues suggests 30.6% and 26.5% year-over-year growth, respectively.
It has delivered solid financial results lately, beating earnings estimates in each of the trailing four quarters, the average surprise being 74.9%.
Risks Still Deserve AttentionThe outlook is not without challenges. Inflation concerns and uneven economic conditions continue to raise questions about consumer spending and borrowers’ ability to manage debt. Provision for credit losses increased 24.6% in the first nine months of fiscal 2026, reflecting a more cautious view of the environment.
Competition is intensifying as Klarna and other fintech firms aggressively pursue market share. Walmart’s decision last year to replace Affirm with Klarna as its exclusive BNPL provider highlighted how quickly key partnerships can change.
Leverage is another concern. Funding debt stood at $2.4 billion at the end of the fiscal third quarter, up from $1.6 billion at fiscal 2025-end. The company’s debt-to-capital ratio of 67.7% remains well above the industry average of 21.4%. PayPal, by comparison, stands at 32%.
The stock trades at 4.67X forward 12-month sales, slightly above its three-year median of 4.40X and the industry average of 3.66X, leaving little room for disappointment. PayPal and Klarna trade far lower, at 1.07X and 1.46X forward sales, respectively.
ConclusionAffirm is executing well, supported by strong user engagement, expanding products and improving earnings prospects. Its growing merchant network and rising transaction volumes provide a solid foundation for long-term growth. However, elevated leverage, rising credit-loss provisions, intense competition and a premium valuation remain key concerns.
While the company’s growth story remains compelling, these risks warrant caution in the short run. Reflecting the balance between favorable fundamentals and the challenges, Affirm currently carries a Zacks Rank #3 (Hold), suggesting investors may want to wait for a more attractive entry point or additional catalysts. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LONDON, June 23, 2026 (GLOBE NEWSWIRE) -- EBC Financial Group (EBC) has been named Most Trusted FX Broker and Best CFD Broker on a global basis at the World Finance Awards 2026, taking two honours within the World Finance Forex Awards. For traders, the recognition is an independent signal that the conditions they depend on have been judged among the strongest in the market: transparent pricing, secure access, and dependable execution.
What the recognition reflects
The Most Trusted FX Broker award recognises the confidence EBC builds through secure market access, responsive service, and consistent operational standards across its global network. For clients, that consistency is what makes a platform dependable through changing market conditions, rather than only in calm ones.
The Best CFD Broker award reflects the strength of EBC's CFD offering across major markets, with robust execution, professional trading conditions, and an environment built for retail, professional, and institutional clients alike. Interbank-level pricing from 0.0 pips and order execution averaging under 20 milliseconds mean lower trading costs and fewer missed fills, helping clients act on opportunities as they arise rather than after the moment has passed.
“EBC has built a reputation in this market that's hard to ignore. Consistently transparent, consistently reliable, and clearly trusted by the clients who matter most. Both wins are thoroughly deserved, and it's been a pleasure watching EBC's progress this year. Congratulations to the whole team,” said Cyril Jones, Awards Director, World Finance.
Global access, backed by local support
For clients, the value of these awards lies in what they make possible. EBC provides access to currencies, commodities, indices, shares, and CFDs across more than 100 countries, supported by local teams that share market insight and respond in real time. Whether starting from a low-capital position or managing professional volume, clients reach global markets through a single regulated environment, with support close to where they are.
Raising the standard for clients worldwide
“Receiving these two global honours from the World Finance Awards is a meaningful recognition of the trust our clients place in us. Our focus remains on delivering transparent, secure, and reliable access to global FX and CFD markets, while continuing to raise the standard of service for traders worldwide,” said Christopher Stiegeler, Executive Director, EBC Financial Group (Cayman) Limited.
That focus runs through how the wider Group operates: a commitment to integrity, high-standard trading conditions, and a safer, more transparent environment in which clients can pursue global opportunities with confidence.
Building on a record of trust
Founded in London, EBC has expanded its international presence through regulated entities operating across major financial jurisdictions, including the UK, Australia, the Cayman Islands, and South Africa, among others. The Group now serves clients in over 100 countries, with more than 5 million registered users and over USD 390 billion in average monthly trading volume.
The 2026 honours extend a multi-year run of World Finance recognition and reinforce EBC's standing as a brokerage measured by the trust, transparency, and long-term value it delivers to the clients it serves.
For more information, visit the EBC Financial Group website at www.ebc.com.
Risk Disclaimer
Trading foreign exchange (FX) and contracts for differences (CFDs) on margin carries a high level of risk and may not be suitable for all investors. Losses can exceed deposits. Past performance does not guarantee future results. Please consider your investment objectives and risk tolerance carefully before trading.
About EBC Financial Group
Founded in London, EBC Financial Group (EBC) is a global brand known for its expertise in financial brokerage and asset management. Through its regulated entities operating across major financial jurisdictions—including the UK, Australia, the Cayman Islands, Mauritius, and others—EBC enables retail, professional, and institutional investors to access global markets and trading opportunities, including currencies, commodities, CFDs and more.
Trusted by investors in over 100 countries and honoured with global awards including multiple year recognition from World Finance, EBC is widely regarded as one of the world’s best brokers with titles including Best Trading Platform and Most Trusted Broker. With its strong regulatory standing and commitment to transparency, EBC has also been consistently ranked among the top brokers—trusted for its ability to deliver secure, innovative, and client-first trading solutions across competitive international markets.
EBC’s subsidiaries are licensed and regulated within their respective jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK's Financial Conduct Authority (FCA); EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA); EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia's Securities and Investments Commission (ASIC); EBC Financial (MU) Ltd is authorised and regulated by the Financial Services Commission Mauritius (FSC).
At the core of EBC are a team of industry veterans with over 40 years of experience in major financial institutions. Having navigated key economic cycles from the Plaza Accord and 2015 Swiss franc crisis to the market upheavals of the COVID-19 pandemic. We foster a culture where integrity, respect, and client asset security are paramount, ensuring that every investor relationship is handled with the utmost seriousness it deserves.
EBC is a proud official foreign exchange partner of FC Barcelona and continues to drive impactful partnerships to empower communities – namely through the UN Foundation’s United to Beat Malaria initiative, Oxford University’s Department of Economics, and a diverse range of partners to champion initiatives in global health, economics, education, and sustainability.
Amazon NASDAQ: AMZN is the prime stock for investors to play Prime Day, as it is the originator and central hub for all things related to it. This year's event runs June 23–26, 2026—a four-day, 96-hour window that Amazon has moved up from its usual July slot.
Critical details for investors to know this year include the expected 9% increase in period sales, Amazon’s 60% share of e-commerce during the event, and its impact on consumer habits. Studies have shown consumers strategically wait to stock up on low-cost essentials, setting the stage for some vendors to outperform others.
Get Walmart alerts:
However, while Amazon is best-positioned, it is not the only company that will benefit.
#1: Walmart Fights Back to Defend Market ShareWalmart NASDAQ: WMT is a good play on Prime Day, too, because it is the world’s largest retailer with a growing, robust online presence. It leans heavily into weeklong sales events intended to defend share, and they work.
Walmart Today
$119.42 +2.24 (+1.91%)
As of 04:00 PM Eastern
52-Week Range$94.23▼
$135.15Dividend Yield0.83%
P/E Ratio41.90
Price Target$138.85
Walmart times its sales events to start earlier and last longer than Prime Day, with an omnichannel presence and accessibility. Omnichannel accessibility enables shoppers to benefit from same-day delivery and in-store pickup deals without an Amazon Prime subscription.
Outside of its sales events set to coincide with Prime Day, WMT catalysts include expectations that earnings growth will accelerate over the course of the year.
Quarterly growth is expected to top 9% year-over-year in the current quarter, then accelerate each quarter modestly for several quarters thereafter.
Analyst trends are positive, with sentiment firming and price target revisions moving well above the existing high.
#2: Affirm Captures Market Share With Buy-Now-Pay-Later OptionsAffirm NASDAQ: AFRM is a strategic play on Prime Day because it enables shoppers to buy higher-ticket items with a lower upfront cost.
Affirm Today
$71.83 -0.37 (-0.51%)
As of 04:00 PM Eastern
52-Week Range$42.10▼
$100.00P/E Ratio65.30
Price Target$86.20
With as much as 10% of the Prime Day business expected to fall in the buy-now-pay-later category, Affirm is expected to see a seasonal boost and sustain its high-double-digit growth pace.
More importantly, the company will significantly expand its loan portfolio, increase recurring revenue, and improve its long-term outlook.
As it stands, Affirm is forecast to sustain a solid double-digit growth rate over the next five to six years and widen its margin along the way.
Twenty-nine analysts rate Affirm stock a Moderate Buy by consensus, with recent revisions in the high-end range, forecasting fresh highs by year’s end. They cite the company’s strong underwriting standards, the push for bank charter, and ecosystem scalability as growth drivers.
#3: Visa Cashes In as the Network Behind the CardsVisa Today
V
Visa
$328.95 +2.35 (+0.72%)
As of 03:58 PM Eastern
52-Week Range$293.89▼
$359.66Dividend Yield0.81%
P/E Ratio28.65
Price Target$387.78
Visa NYSE: V is uniquely positioned to benefit from Prime Day as the world’s premier payment processing platform. Details are sketchy, but it and competitor Master Card are believed to handle upwards of 90% of global volume, with Visa accounting for as much as 60% in the core U.S. market.
Not only is it the force behind most major cards, but it also has partnerships with Amazon reflected in the Amazon-branded Visa Prime card. It enables cash back, bonuses, and other incentives that boost business, membership, and loyalty for both the merchant and processor.
#4: Mastercard Rounds Out the Payment Processing PlayMastercard Today
MA
Mastercard
$488.95 +4.86 (+1.00%)
As of 03:58 PM Eastern
52-Week Range$464.52▼
$601.77Dividend Yield0.71%
P/E Ratio28.30
Price Target$656.08
MasterCard NYSE: MA is a great play on Prime Day, as it commands the remaining market share not captured by Visa.
In this scenario, there is likely to be a modest spike in revenue and earnings, alongside organic growth drivers and a strengthening outlook for capital returns.
MasterCard pays a token dividend, worth approximately 0.7% as of mid-2026, and aggressively buys back shares.
Q1 activity helped to reduce the count by approximately 2.3% year-over-year (YOY), a pace expected to continue in upcoming quarters.
Twenty-eight analysts rate MA stock as a consensus Buy with a 35% upside, and institutions have been accumulating aggressively, running a pace of approximately $3 to $1 on a trailing 12-month basis.
#5: Target Aims to Capture Amazon’s BusinessTarget NYSE: TGT is another retailer actively working to retain its share and potentially capture additional share during Prime Day. It relies on the fact that many shoppers compare deals across platforms, using the opportunity to convert traffic with its own deals.
Target Today
$134.17 +4.44 (+3.42%)
As of 03:58 PM Eastern
52-Week Range$83.44▼
$137.87Dividend Yield3.40%
P/E Ratio17.72
Price Target$129.00
Because it focuses on daily items and essentials, it also converts a high rate of impulse purchases. The takeaway for TGT investors is that it offers a lower-cost entry point compared to WMT and attractive capital returns.
The dividend yields more than 3.5%, while share buybacks incrementally reduce the share count.
Target’s catalysts this year include business recovery. The company is still in the early stages of recovery but showed some traction in the last report, with comps up nearly 4.5%, which has its price trending higher in late Q2 2026.
The likely outcome is that it continues to build momentum in subsequent quarters, improving both its revenue and earnings quality. Thirty-three analysts rate Target as a consensus Hold, but sentiment has been firming, and price targets are improving ahead of the expected mid-August earnings release.
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Affirm Holdings (AFRM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this operator of digital commerce platform have returned +11.6% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Internet - Software industry, to which Affirm Holdings belongs, has gained 2.7% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Affirm Holdings is expected to post earnings of $0.36 per share, indicating a change of +80% from the year-ago quarter. The Zacks Consensus Estimate has changed +9.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.25 points to a change of +733.3% from the prior year. Over the last 30 days, this estimate has changed +4.7%.
For the next fiscal year, the consensus earnings estimate of $1.69 indicates a change of +35.6% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Affirm Holdings is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Affirm Holdings, the consensus sales estimate of $1.1 billion for the current quarter points to a year-over-year change of +26%. The $4.21 billion and $5.33 billion estimates for the current and next fiscal years indicate changes of +30.6% and +26.5%, respectively.
Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $0.3 for the same period compares with $0.01 a year ago.
Compared to the Zacks Consensus Estimate of $997.92 million, the reported revenues represent a surprise of +4.09%. The EPS surprise was +76.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Affirm Holdings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Affirm Holdings (AFRM - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, AFRM broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, AFRM has gained 11.6%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
The bullish case only gets stronger once investors take into account AFRM's positive earnings estimate revisions. There have been 10 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on AFRM for more gains in the near future.
An updated edition of the March 25, 2026, article.
Financial technology or fintech, is reshaping the global financial landscape by making financial services faster, more accessible and more customer-focused. By combining finance with advanced technologies such as artificial intelligence (AI), blockchain, Big Data and cloud computing, fintech has disrupted traditional models across banking, payments, lending and investing.
One of fintech’s most significant contributions is its role in expanding financial inclusion. Digital wallets, mobile banking platforms and peer-to-peer lending services have improved access for millions of unbanked and underbanked individuals. Fintech innovation is also transforming cross-border payments, making transactions that were once slow, expensive and complex faster, cheaper and more efficient.
Fintech has also redefined payments and lending by improving convenience, speed and accessibility. Contactless payments, buy now, pay later solutions and app-based lending platforms have simplified everyday financial transactions for consumers while helping businesses better meet customer needs. In capital markets, robo-advisors and algorithm-driven trading platforms are lowering costs and reducing barriers to investing.
At the same time, fintech is enhancing transparency, cybersecurity and risk management across the financial system. Blockchain supports secure and tamper-resistant transactions, while AI-powered tools strengthen fraud detection, credit assessment and regulatory compliance. As fintech continues to evolve, it is pushing traditional financial institutions to innovate, collaborate and adapt, creating a more agile, inclusive and technology-driven global financial ecosystem. So, stocks like Affirm Holdings, Inc. (AFRM - Free Report) , Visa Inc. (V - Free Report) and Block, Inc. (XYZ - Free Report) are grabbing investor attention.
Our Fintech Screen will help you identify the right stocks now to ride the wave of this trillion-dollar revolution. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.
Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
Affirm Holdings is focused on providing flexible and transparent installment loans at the point of sale (POS). It partners with a wide range of merchants to offer both interest-free and interest-bearing payment options, giving consumers more control over how they pay for their purchases. The company’s primary goal is to offer a straightforward and customer-friendly alternative to traditional credit options, promoting responsible borrowing with no late fees or hidden charges.
For merchants, Affirm Holdings provides tools to drive sales and improve customer engagement. Through its API, merchants can integrate various financing options at checkout. The company also offers features like Affirm at Checkout, a merchant dashboard and analytics tools, helping businesses track performance and optimize the customer experience. The Affirm Marketplace further supports customer acquisition and brand visibility.
Consumers benefit from AFRM's range of payment options, including Pay-in-4 and longer-term interest-bearing loans. The Affirm App and Affirm Card enable users to make online and in-store purchases, with the ability to convert eligible debit transactions into installment plans. Apart from a strong presence in the United States, the company is accelerating global expansion through new markets, merchant partnerships and stronger funding channels.
Affirm uses a data-rich, cloud-native platform and machine learning to assess fraud and credit risk, improving scalability and underwriting accuracy. It also applies AI to boost productivity and automate customer support. Tools like Boost AI and Adapt AI help merchants optimize 0% offers, improve conversions and unlock incremental marketing spend.
The Zacks Consensus Estimate for AFRM’s fiscal 2026 sales and earnings implies year-over-year growth of 29.8% and 680%, respectively. The company, currently, carries a Zacks Rank #3 (Hold).
Visa’s dominant market position is supported by steady payments volume growth, strategic acquisitions and continued innovation in digital payments. Rising cross-border activity, higher digital transaction adoption and investments in AI and stablecoins further strengthen the company’s long-term outlook.
Visa has adapted quickly to the shift toward digital commerce. The company continues to enhance its products and platforms through offerings such as Visa Token Service, Visa Checkout and In-App Provisioning, reinforcing its leadership in secure digital payments. It is also advancing emerging payment methods, including contactless, tap-to-pay and secure remote commerce, while expanding partnerships across fintech and cryptocurrency-linked use cases.
The company is also moving into agentic commerce. Visa introduced Intelligent Commerce Connect, an “on-ramp” that enables businesses to connect AI agents to payments and acceptance through a single integration. It is also expanding its Agentic Ready testing program from Europe into Asia Pacific and Latin America to validate enrollment, tokenization, authentication and authorization flows ahead of broader deployment.
Visa’s AI-driven security capabilities remain a key differentiator as fraud risks increase. The company has embedded AI across more than 100 products, primarily to strengthen fraud prevention, and has invested $3.5 billion to modernize its data platform. Visa is also leaning into stablecoins to support faster, more programmable cross-border settlement while maintaining its network as the common layer for global money movement.
The Zacks Consensus Estimate for V’s fiscal 2026 sales and earnings implies year-over-year growth of 13.4% and 14.1%, respectively. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Block is building a powerful fintech ecosystem through its two core growth engines: Square and Cash App. Together, these platforms provide a broad suite of solutions across payments, commerce, banking, investing and lending. The company is also expanding its partner network, which should help broaden distribution and strengthen customer reach.
Square, Block’s merchant-focused business, continues to deliver solid performance. Growth in gross payment volume (GPV) and gross profit reflects healthy business momentum. The company is also adding new capabilities, such as Square AI, which uses data-driven insights to help sellers manage operations, improve decision-making and grow in an increasingly competitive POS and software market.
Cash App remains a key growth driver for Block. The platform has evolved from a peer-to-peer payments tool into a broader financial ecosystem, particularly popular with younger users. It now offers payments, banking, commerce and Bitcoin-related services.
Block has further strengthened Cash App with features such as group payments, buy-now-pay-later offerings through Afterpay, enhanced borrowing tools, Tap to Pay on iPhone, Proto Bitcoin mining initiatives, Bitkey self-custody, Bitcoin wallet services and TIDAL music streaming. These additions are helping increase user engagement, deepen customer relationships and support broader business adoption.
The Zacks Consensus Estimate for XYZ’s 2026 sales and EPS implies year-over-year growth of 8.9% and 58.7%, respectively. The company, currently, carries a Zacks Rank #3.
Key Takeaways Affirm expanded Royal Caribbean cruise financing to the U.K. and Canada with no late fees. AFRM said travel purchases across its network rose 29% year over year in Q1 2026. Royal Caribbean renewed its U.S. deal with Affirm as the firms broaden international reach. Affirm Holdings, Inc. (AFRM - Free Report) recently announced the expansion of its partnership with Royal Caribbean Group, one of the world’s leading cruise brands, to the United Kingdom and Canada, allowing travelers to finance cruise bookings through installment payments without compounding interest, late fees or hidden charges. Customers will see the total cost upfront and pay only the amount agreed to at the time of purchase.
The partnership expansion comes ahead of the peak summer travel season, a period that typically sees stronger leisure travel demand. Flexible payment options are becoming increasingly important for travelers planning vacations and other discretionary purchases. The latest development also builds on the companies’ existing relationship in the United States, which has been renewed.
The deal strengthens AFRM’s presence in travel financing, an area that has emerged as a meaningful growth driver for the company. Cruise vacations typically involve higher-ticket purchases, making installment-based payment options attractive to consumers seeking greater budgeting flexibility. Affirm recently reported that travel purchases across its network increased 29% year over year in the quarter ended March 31, 2026.
The partnership expansion could further support AFRM’s gross merchandise volume (GMV) growth and deepen engagement across its merchant network. At the end of Q3 2026, its active merchant count rose 44% year over year to 515,000, while GMV climbed 35% to $11.6 billion.
Total transactions increased 45% year over year to 45.3 million, reflecting strong consumer adoption and merchant activity. The expanded Royal Caribbean partnership is likely to further strengthen Affirm’s position in the growing travel financing market while advancing its broader international expansion strategy.
AFRM’s Stock Price PerformanceShares of Affirm have gained 37% over the past year against the industry’s 13.9% decline.
Image Source: Zacks Investment Research
AFRM’s Zacks Rank & Key PicksAFRM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the space are Klarna Group plc (KLAR - Free Report) , Visa Inc. (V - Free Report) and Pagaya Technologies Ltd. (PGY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Klarna’s current-year earnings has witnessed three upward movements against no movement in the opposite direction, indicating a 98.7% year-over-year increase. The consensus estimate for KLAR’s current-year revenues is pegged at $4.44 billion, indicating a 26.5% year-over-year increase.
The Zacks Consensus Estimate for Visa’s current-year earnings is pegged at $13.09 per share, indicating 14.1% year-over-year growth. Visa beat earnings estimates in each of the trailing four quarters, with the average surprise being 3.2%. The consensus estimate for current-year revenues is pegged at $45.35 billion, indicating a 13.4% year-over-year increase.
The Zacks Consensus Estimate for Pagaya’s current-year earnings is pegged at $2.88 per share, which has remained stable over the past 30 days. PGY beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 29%. The consensus estimate for current-year revenues is pegged at $1.48 billion, indicating a 13.7% year-over-year increase.
Affirm Holdings (AFRM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this operator of digital commerce platform have returned +6.7%, compared to the Zacks S&P 500 composite's +5.5% change. During this period, the Zacks Internet - Software industry, which Affirm Holdings falls in, has lost 4%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Affirm Holdings is expected to post earnings of $0.36 per share, indicating a change of +80% from the year-ago quarter. The Zacks Consensus Estimate has changed +18.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.21 points to a change of +706.7% from the prior year. Over the last 30 days, this estimate has changed +11%.
For the next fiscal year, the consensus earnings estimate of $1.66 indicates a change of +37.7% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed -3.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Affirm Holdings.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Affirm Holdings, the consensus sales estimate for the current quarter of $1.1 billion indicates a year-over-year change of +26%. For the current and next fiscal years, $4.19 billion and $5.27 billion estimates indicate +29.8% and +25.9% changes, respectively.
Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $0.3 for the same period compares with $0.01 a year ago.
Compared to the Zacks Consensus Estimate of $997.92 million, the reported revenues represent a surprise of +4.09%. The EPS surprise was +76.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Affirm Holdings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Pay later provider Affirm has launched an expanded partnership with payments infrastructure company Stripe.
The collaboration is designed to bring Affirm’s solutions to U.K.-based Stripe merchants for the first time, the companies said in a Tuesday (June 2) news release. Beginning next month, U.K. businesses using Stripe will be able to add Affirm to their online checkout.
“Checkout is no longer just a payment moment, it’s a decision moment,” said Ruth Spratt, vice president and U.K. country manager at Affirm.
“Consumers are increasingly seeking payment options that offer more control and clarity, and merchants are seeing the impact that can have on conversion and customer loyalty. Expanding our partnership with Stripe helps us do exactly that, bringing these benefits to more businesses across the UK.”
Fran Ryan, Stripe’s chief business officer, added that bringing the partnership to the U.K. is “the next step in making the right payment options accessible to businesses everywhere” as merchants seek frictionless payment options.
The companies say their new partnership builds on the strength of their work in Canada and the U.S., where Stripe businesses using Affirm saw increased revenues and conversion.
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In addition, Stripe and Affirm are “collaborating on the future of AI-powered commerce, with a shared focus on making payments more seamless and transparent as agentic experiences evolve,” the release added.
The two companies earlier this year said they would support shared payment tokens to allow for secure pay-over-time experiences “in AI-powered commerce environments.”
In other buy now, pay late (BNPL) news, recent PYMNTS Intelligence research finds that the millions of consumers who are cutting back the most are using pay-later services the least.
That research, based on a survey of 2,283 U.S. adults conducted in late March and early April 2026, split consumers into three groups based on behavior — not age, income or geography — to explore how they react to financial pressure.
“It shows that the variation in financial outcomes within a single generation is far wider than the variation between generations,” PYMNTS wrote. “The determining factor is behavioral; age, income and geography explain less than how people responded to financial pressure. Consumer usage of BNPL illustrates that point.”
So-called “reactive consumers” — those whose spending and savings both declined and who coped almost entirely by cutting back — used BNPL at a rate of just 8%.
“By contrast, 48% of consumers who took proactive steps, such as adding income, negotiating bills and reaching for financial tools, used BNPL — six times more,” PYMNTS added.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Affirm Holdings (AFRM - Free Report) Founded in 2012 and headquartered in San Francisco, CA, Affirm Holdings, Inc. is a financial technology company specializing in payment solutions that provide consumers with flexible, transparent installment loans — both interest-free and interest-bearing — at the point of sale. By partnering with a diverse range of merchants, Affirm enables customers to pay for purchases over time.
AFRM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. AFRM has a Momentum Style Score of A, and shares are up 8.7% over the past four weeks.
10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.15 to $1.25 per share. AFRM boasts an average earnings surprise of +74.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AFRM should be on investors' short list.
Affirm Holdings (AFRM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this operator of digital commerce platform have returned +6.3% over the past month versus the Zacks S&P 500 composite's +5.4% change. The Zacks Internet - Software industry, to which Affirm Holdings belongs, has gained 7.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Affirm Holdings is expected to post earnings of $0.36 per share for the current quarter, representing a year-over-year change of +80%. Over the last 30 days, the Zacks Consensus Estimate has changed +18.4%.
For the current fiscal year, the consensus earnings estimate of $1.25 points to a change of +733.3% from the prior year. Over the last 30 days, this estimate has changed +15%.
For the next fiscal year, the consensus earnings estimate of $1.69 indicates a change of +35.6% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed -0.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Affirm Holdings.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Affirm Holdings, the consensus sales estimate of $1.1 billion for the current quarter points to a year-over-year change of +26%. The $4.2 billion and $5.31 billion estimates for the current and next fiscal years indicate changes of +30.4% and +26.4%, respectively.
Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +32.6%. EPS of $0.3 for the same period compares with $0.01 a year ago.
Compared to the Zacks Consensus Estimate of $997.92 million, the reported revenues represent a surprise of +4.09%. The EPS surprise was +76.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Affirm Holdings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
SAN FRANCISCO & TORONTO--(BUSINESS WIRE)--Affirm (NASDAQ: AFRM) and Canada Pension Plan Investment Board (“CPP Investments”), through subsidiaries of CPPIB Credit Investments Inc., today announced a renewed and expanded forward-flow agreement. Under the 24-month agreement, CPP Investments will commit US$1.7 billion to purchasing Affirm installment loans, with the ability to increase the commitment to US$2.2 billion.
The agreement is expected to support up to approximately US$8 billion in consumer loan volume over its two-year term and builds on a longstanding relationship. Since 2019, CPP Investments has purchased nearly US$14 billion in Affirm assets through forward-flow agreements and asset-backed securitizations.
This investment will help power Affirm’s growing network of consumers and merchants. Affirm offers consumers honest, transparent payment options at checkout and funds its loans through a diverse network of capital partners. Nearly 27 million active consumers use Affirm to pay over time on terms they can see and understand, with no late or hidden fees. Over the last 12 months ending March 31, 2026, Affirm delivered US$46 billion in gross merchandise volume (GMV).
“CPP Investments has been one of our most valued capital partners since the earliest days of our program, and this renewal reflects the trust and track record we've built together,” said Michael Linford, Chief Operating Officer of Affirm. “We are grateful to have deep partnerships with some of the world’s most sophisticated, stable investors, including CPP Investments, and this expanded relationship will continue to fuel our growth as we generate quality assets at scale.”
“Affirm has established a leading position in a large and growing segment of consumer finance by offering transparent payment solutions that resonate with both consumers and merchants,” said Paras Vira, Managing Director, Head of Americas Structured Credit at CPP Investments. “The company has consistently produced the kind of credit performance we look for in a long-term partner and we are pleased to renew and expand our commitment as we aim to generate attractive returns for the CPP Fund in the interests of CPP contributors and beneficiaries.”
Affirm maintains a durable and resilient funding model across multiple channels, including warehouse facilities, forward-flow agreements, and asset-backed securitizations. As of March 31, 2026, Affirm’s total funding capacity had grown to US$28.2 billion, supported by a diverse group of long-term capital partners across institution types.
About Affirm
Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interests of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2026, the Fund totalled C$793.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
Forward Looking Statement from Affirm
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statements regarding Affirm’s future results of operations and financial condition, business strategy, plans and objectives of management for future operations, and expectations of the renewed and expanded partnership with CPP Investments, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as “anticipate,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, including risks described under “Risk Factors” in Affirm’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and in its other filings with the U.S. Securities and Exchange Commission. Except as required by law, Affirm undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or to changes in our expectations.
Affirm (NASDAQ: AFRM) and Canada Pension Plan Investment Board (“CPP Investments”), through subsidiaries of CPPIB Credit Investments Inc., today announced a renewed and expanded forward-flow agreement. Under the 24-month agreement, CPP Investments will commit US$1.7 billion to purchasing Affirm installment loans, with the ability to increase the commitment to US$2.2 billion.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604725818/en/
The agreement is expected to support up to approximately US$8 billion in consumer loan volume over its two-year term and builds on a longstanding relationship. Since 2019, CPP Investments has purchased nearly US$14 billion in Affirm assets through forward-flow agreements and asset-backed securitizations.
This investment will help power Affirm’s growing network of consumers and merchants. Affirm offers consumers honest, transparent payment options at checkout and funds its loans through a diverse network of capital partners. Nearly 27 million active consumers use Affirm to pay over time on terms they can see and understand, with no late or hidden fees. Over the last 12 months ending March 31, 2026, Affirm delivered US$46 billion in gross merchandise volume (GMV).
“CPP Investments has been one of our most valued capital partners since the earliest days of our program, and this renewal reflects the trust and track record we've built together,” said Michael Linford, Chief Operating Officer of Affirm. “We are grateful to have deep partnerships with some of the world’s most sophisticated, stable investors, including CPP Investments, and this expanded relationship will continue to fuel our growth as we generate quality assets at scale.”
“Affirm has established a leading position in a large and growing segment of consumer finance by offering transparent payment solutions that resonate with both consumers and merchants,” said Paras Vira, Managing Director, Head of Americas Structured Credit at CPP Investments. “The company has consistently produced the kind of credit performance we look for in a long-term partner and we are pleased to renew and expand our commitment as we aim to generate attractive returns for the CPP Fund in the interests of CPP contributors and beneficiaries.”
Affirm maintains a durable and resilient funding model across multiple channels, including warehouse facilities, forward-flow agreements, and asset-backed securitizations. As of March 31, 2026, Affirm’s total funding capacity had grown to US$28.2 billion, supported by a diverse group of long-term capital partners across institution types.
About Affirm
Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interests of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2026, the Fund totalled C$793.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
Forward Looking Statement from Affirm
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statements regarding Affirm’s future results of operations and financial condition, business strategy, plans and objectives of management for future operations, and expectations of the renewed and expanded partnership with CPP Investments, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as “anticipate,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, including risks described under “Risk Factors” in Affirm’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and in its other filings with the U.S. Securities and Exchange Commission. Except as required by law, Affirm undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or to changes in our expectations.
AFRM-PA
View source version on businesswire.com: https://www.businesswire.com/news/home/20260604725818/en/
Key Takeaways Affirm renewed and expanded its CPP Investments funding deal with a 24-month forward-flow agreement.Affirm expects the commitment to support about $8B in consumer loan volume over two years.Affirm had $28.2B in funding capacity as of March 31, 2026, backed by capital partners. Affirm Holdings, Inc. (AFRM - Free Report) has renewed and expanded its funding partnership with Canada Pension Plan Investment Board (CPP Investments). Under the new 24-month forward-flow agreement, CPP Investments will commit $1.7 billion to purchase Affirm installment loans, with the option to increase that amount to $2.2 billion. The agreement is expected to support approximately $8 billion in consumer loan volume over the next two years.
The relationship between the two companies dates back to 2019, during which CPP Investments purchased nearly $14 billion of Affirm assets via forward-flow agreements and asset-backed securitizations. The expanded commitment supports Affirm’s continued expansion in the buy now, pay later market.
Over the trailing 12 months ended March 31, 2026, the company generated $46 billion in GMV and served almost 27 million active consumers. GMV increased 35% year over year to $11.6 billion in the third quarter of fiscal 2026, highlighting continued strength in platform activity.
The partnership provides additional funding capacity to support future loan originations while preserving balance-sheet flexibility. It also signals continued confidence from a major institutional investor in Affirm’s underwriting discipline and loan performance.
The agreement highlights the strength of Affirm’s funding model, which employs a capital-light structure that supports loan growth without requiring the company to retain all originated assets on its balance sheet. As of March 31, 2026, Affirm had total funding capacity of $28.2 billion, supported by a diversified network of long-term capital partners. Overall, the transaction enhances the company’s ability to meet growing consumer demand while mitigating funding-related risks as the business scales.
How Are Competitors Faring?Some of AFRM’s competitors in the payments space are Klarna Group plc (KLAR - Free Report) and Sezzle Inc. (SEZL - Free Report) .
In March 2026, Klarna expanded its forward-flow and whole-loan sale program with funds managed by Elliott Investment Management, doubling the facility size to $2 billion and extending its term to three years. The arrangement allows Klarna to sell newly originated U.S. receivables while retaining underwriting and loan-servicing responsibilities.
In May 2026, Sezzle expanded its funding capacity by securing a new $300 million receivables warehouse facility from Mesirow Alternative Credit, with an additional $75 million accordion feature. The deal increased Sezzle's advance rate and enhanced funding flexibility to support future loan growth.
AFRM’s Price Performance, Valuation & EstimatesShares of AFRM have risen 16.6% over the past year against the industry’s decline of 12.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.41X, up from the industry average of 3.96X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.25 per share, implying a 733.3% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
AFRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A bounce in oil makes sense on Friday, as we are heading into a weekend that could have headlines moving things. Short covering could be an issue as well.
The light sweet crude oil market has dipped early during the trading session here on Friday, but it does seem like there is quite a bit of support underneath the $85 level, so I think we have a situation where traders are going to continue to see the overall range play out that has been pretty much intact since March.
A little bit of a bounce here probably makes some sense heading into the weekend, as we don’t know what headlines will come out of the Middle East, but that will probably be influencing this market. A bounce to the 50-day EMA makes a certain amount of sense. That being said, if we get a quiet weekend, probably be a quiet opening on Monday.
Brent Crude Oil Technical Analysis The Brent market is a little bit the same; it’s also showing the same type of candlestick as the $85 level is offering support, with the 200-day EMA backing it up. We could get a bounce towards the $95 level, but if we break down below the 200-day EMA, that could unwind this market pretty drastically.
We’ll just have to wait and see how this plays out, but it is worth noting that anything can happen over the weekend, so I think what you have more likely than not, at least on Friday, is maybe some short covering.
I don’t know that it’s bullish, but with the right headline over the weekend, we could see this thing open up $4 or $5 a barrel higher, and if you are short of this market, that’s something you have to be aware of.
