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AvidXchange Holdings, Inc. (AVDX) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with AvidXchange Holdings, Inc. (AVDX - Free Report) standing at $12.91, reflecting a -0.15% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.54%.

Prior to today's trading, shares of the company had gained 5.64% over the past month. This has outpaced the Computer and Technology sector's loss of 0.4% and the S&P 500's gain of 2.06% in that time.

The investment community will be paying close attention to the earnings performance of AvidXchange Holdings, Inc. in its upcoming release. The company's upcoming EPS is projected at $0.03, signifying a 250% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $101.76 million, showing a 17.2% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $444.13 million, which would represent changes of +157.14% and +16.66%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AvidXchange Holdings, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 56.25% higher. Currently, AvidXchange Holdings, Inc. is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, AvidXchange Holdings, Inc. is currently exchanging hands at a Forward P/E ratio of 70.85. This represents a premium compared to its industry's average Forward P/E of 30.54.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 48, finds itself in the top 20% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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