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Is Affirm (AFRM) Stock Outpacing Its Business Services Peers This Year?

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The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Affirm Holdings (AFRM - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Affirm Holdings is one of 316 companies in the Business Services group. The Business Services group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Affirm Holdings is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AFRM's full-year earnings has moved 68.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, AFRM has gained about 163.3% so far this year. At the same time, Business Services stocks have gained an average of 13.8%. This shows that Affirm Holdings is outperforming its peers so far this year.

Another stock in the Business Services sector, AppLovin (APP - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 275.1%.

The consensus estimate for AppLovin's current year EPS has increased 12.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Affirm Holdings belongs to the Business - Services industry, a group that includes 23 individual stocks and currently sits at #33 in the Zacks Industry Rank. On average, this group has gained an average of 8% so far this year, meaning that AFRM is performing better in terms of year-to-date returns.

In contrast, AppLovin falls under the Technology Services industry. Currently, this industry has 176 stocks and is ranked #79. Since the beginning of the year, the industry has moved +35.3%.

Affirm Holdings and AppLovin could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.


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