AFFIRM HOLDINGS INC (NASDAQ:AFRM) Shows Strong Technical and Fundamental Momentum

The method combining Mark Minervini's Trend Template with High Growth Momentum screening works to find stocks showing both solid technical momentum and good fundamental growth traits. This two-part process makes certain that chosen investments are not only in clear uptrends but also supported by improving earnings and sales, which are typical of top growth stocks. By using these strict filters, investors can locate companies that display both price strength and positive business momentum, possibly setting them up for sustained good performance.

Technical Strength and Trend Template Fit

AFFIRM HOLDINGS INC (NASDAQ:AFRM) shows good fit with Minervini's Trend Template rules, which center on finding stocks in clear uptrends with definite technical strength.

The stock now trades above all main moving averages, with its price of $78.95 placed well above the 150-day MA ($67.20) and 200-day MA ($64.64). Both the 150-day and 200-day moving averages are moving up, confirming the long-term positive direction. The 50-day MA ($77.83) is above both the 150-day and 200-day MAs, forming the correct order that Minervini highlights for confirming building momentum.

Important technical measures that meet the Trend Template include:

• Current price is 155% above the 52-week low of $30.90
• Trading within 21% of the 52-week high of $100.00
• Relative Strength ranking of 82.77, showing it does better than about 83% of all stocks

These technical features are important in the Minervini system because they help find stocks that have already shown strength and are probable to maintain their upward path. The method stays away from "bargain hunting" and instead buys strength, as stocks reaching new highs frequently continue to reach new highs.

Fundamental Growth Momentum

Apart from technical strength, AFRM displays good growth traits that fit with high-growth investment ideas. The company's financial results show clear improvement across several measures.

Earnings growth has been especially notable, with the latest quarter showing 174% year-over-year EPS growth. This comes after earlier quarters with growth rates of 243% and 102%, showing steady upward momentum. The trailing twelve-month EPS of $0.67 means 147% growth compared to the prior period.

Revenue growth stays good at 38.8% for the last full year, with recent quarterly growth keeping solid momentum at 34% year-over-year. The company has shown it can beat predictions, exceeding EPS estimates in all of the last four quarters by an average of 142%.

Profitability measures show clear betterment:

• Current quarter profit margin of 8.65%, up from 0.36% two quarters before
• Free cash flow per share of $2.36, meaning very large 1,273% growth
• Analyst view stays positive with 5.55% upward changes to next year's EPS estimates

These fundamental gains are necessary in the growth investment system because they supply the positive business momentum that can support stock price gains. Minervini's approach states that "big earnings attract big attention," and AFRM's improving profitability probably adds to its technical strength.

Market Setting and Relative Strength

AFRM's performance needs to be viewed within its market setting. The stock's Relative Strength ranking of 82.77 shows it is doing better than most stocks, a main trait Minervini seeks in market leaders. Inside the Financial Services sector, AFRM does better than 88% of similar companies, placing it as a sector leader.

While the S&P 500 moves positively in both short and long-term periods, AFRM's technical rating of 8 out of 10 mirrors its solid individual performance. The stock has given good returns over several time periods, with 50% gains over six months and 41% over twelve months, showing continued momentum.

Technical Evaluation Summary

According to the detailed technical analysis report, AFRM gets a solid technical rating of 8 out of 10, reflecting steady performance across both short and longer-term periods. The evaluation finds six important support levels between $45.45 and $72.85, giving several possible entry points on dips. While the setup quality is now rated medium because of recent price movement, the overall technical condition stays very good with both short-term and long-term directions labeled positive.

Locating Comparable Opportunities

For investors looking for similar high-growth momentum stocks that meet Minervini's strict rules, more screening results are available through this High Growth Momentum + Trend Template screen. This screen methodically finds stocks that join solid technical directions with improving fundamental growth, supplying a selected list of possible investment choices for more study.

Disclaimer: This evaluation is for information and learning only and is not investment advice. All investments have risk, and past results do not guarantee future outcomes. Readers should do their own research and talk with a qualified financial advisor before making investment choices.