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

AFFIRM HOLDINGS INC (NASDAQ:AFRM) stands out as a high-growth momentum candidate with a solid technical setup, making it a noteworthy stock for investors focused on earnings acceleration and price strength. The company, which operates a digital commerce platform, has demonstrated strong growth metrics while also presenting a favorable chart pattern.

Growth Momentum Highlights

• Earnings & Revenue Growth: AFRM posted a 102.3% year-over-year EPS growth in the most recent quarter, with sales up 35.9%. Over the past year, EPS growth reached 90.6%, while revenue expanded by 37%.
• 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 545.9% over the past three months.
• Free Cash Flow Strength: Free cash flow per share surged 354.7% year-over-year, signaling improving financial health.
• Profit Margin Expansion: The latest quarter showed a profit margin of 39.6%, a significant improvement from prior periods.

Technical Strength & Setup

• Technical Rating (9/10): AFRM’s long-term trend remains positive, and it outperforms 95% of stocks in the Financial Services sector. The stock has been consolidating near the upper end of its 52-week range.
• Setup Rating (8/10): The stock is forming a pullback within a broader uptrend, with support near $64.05-$64.72. A breakout above $70.01 could signal a new upward move.
• Key Levels: Resistance sits between $69.19-$70.00, while support zones provide clear stop-loss levels for traders.

For a deeper look at AFRM’s technical outlook, review the full technical report.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar growth and technical characteristics.

Disclaimer

This is not investing advice. Always conduct your own research and consider risk management before making investment decisions.