AFFIRM HOLDINGS INC (NASDAQ:AFRM) - A High Growth Momentum Stock with Strong Technical Setup

AFFIRM HOLDINGS INC (NASDAQ:AFRM) stands out as a compelling candidate for high-growth momentum investors, combining strong earnings momentum with a favorable technical setup. The stock meets key criteria for growth and technical strength, making it worth a closer look.

Growth Momentum Highlights

• Earnings & Revenue Growth: AFRM has demonstrated impressive year-over-year EPS growth of 90.6% (TTM) and revenue growth of 37.0%. Recent quarterly EPS growth exceeds 100%, with the next quarter expected to grow by 180.3%.
• Positive Surprises & Revisions: The company has beaten EPS estimates in all of the last four quarters, with an average surprise of 116.9%. Analysts have also raised next-year EPS estimates by 142.8% over the past three months.
• Free Cash Flow Expansion: FCF per share has surged by 354.7% over the past year, signaling improving financial health.
• Sales Acceleration: Quarterly sales growth remains strong at 35.9%, with consistent performance in prior quarters.

Technical Strength & Setup

AFRM holds a Technical Rating of 10, reflecting a strong uptrend in both short and long-term timeframes. Key technical observations include:

• Bull Flag Pattern: The stock is currently consolidating after a strong upward move, suggesting potential for another breakout.
• Support & Resistance: Immediate support lies near $61.27-$62.18, while resistance is at $62.20 and $63.51. A breakout above $62.21 could signal further upside.
• Volume & Liquidity: Trading volume remains healthy, with recent pullbacks occurring on lower volume—a positive sign for continuation.

The Setup Rating of 7 indicates a consolidation phase with reduced volatility, offering a potential entry point for traders.

For a deeper technical analysis, review the full technical report on AFRM.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.