Wall Street analysts suggest buying Affirm Holdings, but consider their advice carefully before investing.
New York: So, you’re thinking about investing in Affirm Holdings? Well, it’s always good to check what the experts say first. Wall Street analysts often have insights that can help you decide whether to buy, sell, or hold a stock.
Right now, Affirm Holdings (AFRM) has an average brokerage recommendation of 1.95. That’s pretty close to a “Strong Buy.” Out of 19 firms, 11 are saying it’s a Strong Buy, which is over half. Sounds promising, right?
But hold on a second. Just because analysts are recommending it doesn’t mean you should jump in without doing your homework. Studies show that these recommendations don’t always lead to the best investment choices. Sometimes, brokerage firms have their own interests at heart, which can skew their ratings.
For instance, they might give five “Strong Buy” ratings for every “Strong Sell.” So, it’s wise to take their advice with a grain of salt. Instead, use their recommendations to back up your own research.
Speaking of research, there’s a tool called the Zacks Rank that’s pretty reliable. It rates stocks from 1 to 5 based on earnings estimate revisions. This can give you a clearer picture of how a stock might perform in the near term.
Now, about Affirm Holdings: the Zacks Consensus Estimate for this year is sitting at -$0.53, and it hasn’t changed in a month. This steady outlook might mean the stock will just follow the market trends for now.
Currently, Affirm has a Zacks Rank of #3, which is a “Hold.” So, while the analysts are saying “Buy,” it might be smart to be cautious. Just because they’re optimistic doesn’t mean you should dive in headfirst.
In the end, it’s all about balancing the information you get. Keep an eye on the Zacks Rank and combine it with what the analysts say. That way, you can make a more informed decision about whether to invest in Affirm Holdings.
