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AvidXchange Holdings, Inc. (AVDX) Stock Sinks As Market Gains: Here's Why

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AvidXchange Holdings, Inc. (AVDX - Free Report) closed at $8.08 in the latest trading session, marking a -0.12% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.6%.

Heading into today, shares of the company had gained 1.51% over the past month, outpacing the Computer and Technology sector's gain of 0.91% and lagging the S&P 500's gain of 1.71% in that time.

Investors will be eagerly watching for the performance of AvidXchange Holdings, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.07, marking a 133.33% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $110.89 million, up 12.37% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.24 per share and revenue of $438.08 million, indicating changes of +242.86% and +15.07%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AvidXchange Holdings, Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AvidXchange Holdings, Inc. currently has a Zacks Rank of #3 (Hold).

Investors should also note AvidXchange Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 33.71. Its industry sports an average Forward P/E of 30.41, so one might conclude that AvidXchange Holdings, Inc. is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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