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Affirm (AFRM) & ATERNAL to Offer BNPL Solutions to Art Buyers

Affirm Holdings, Inc. AFRM recently announced a partnership with ATERNAL to serve as the exclusive pay over-time provider in art galleries. Shares of AFRM gained 1.7% on Sep 7, 2023, implying investors’ confidence in the company’s prospects. ATERNAL is an inventory management platform for small to large-scale art galleries, and this partnership is expected to enhance its offerings to merchants, driving growth.

This move bodes well, as AFRM will be able to expand its network with new merchants, driving its top-line growth. The partnership is expected to increase gross merchandise value in the future. Initiatives like this will aid AFRM in achieving its expected full-year profitability in fiscal 2024 on an adjusted operating income basis. It expects revenues to be more than $1.9 billion for fiscal 2024.

ATERNAL can provide flexible payment options to art buyers, such as pay over time. This will add to ATERNAL’s offerings to art galleries, like improved workflows and insights from transactions. Hence, ATERNAL’s clients will experience increased sales as more customers get attracted to the buy now pay later (BNPL) solutions.

The major strength of Affirm is its technology, which aids it in pricing its products and risk assessment. AFRM allows customers to pay overtime and does not charge hidden fees or late payment charges. It charges customers on a simple interest-rate basis and is transparent in displaying exactly what the customer owes, reducing their burden.

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Affirm is set to grow its business by collaborating with global giants, such as Amazon and Fidelity National Information Services. These partnerships will enable customers to access buy now and pay later options and drive growth in merchant business. AFRM will make money from commissions charged to businesses, boosting its top line in the future.

The Zacks Consensus Estimate for AFRM’s fiscal 2024 revenues is pegged at $2.4 billion, indicating 21% year-over-year growth. This trend will likely help the company to become a profitable firm. The company is yet to register operating profit in the quarters ahead. However, modern and exciting products like Debit+ Card and partnerships will bring the company closer to its goals.

Zacks Rank and Price Performance

Affirm currently has a Zacks Rank #3 (Hold). In the year-to-date period, shares of Affirm have gained 132.5% compared with 2.3% growth of the industry it belongs to.

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Zacks Investment Research


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Stocks to Consider

Some better-ranked stocks in the Business Services space are Limbach Holdings, Inc. LMB, Trane Technologies plc TT and Api Group Corporation APG. While Limbach presently sports a Zacks Rank #1 (Strong Buy), Trane Technologies and APi Group currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Limbach outpaced estimates in each of the last four quarters, the average surprise being 81.40%. The Zacks Consensus Estimate for LMB’s 2023 earnings is pegged at $1.36 per share, which has more than doubled from the year-ago reported figure. The consensus mark for revenues suggests growth of 0.8% from the year-ago reported number. The consensus mark for LMB’s 2023 earnings has moved 21.4% north in the past 30 days.

Trane Technologies’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 7.30%. The Zacks Consensus Estimate for TT’s 2023 earnings suggests an improvement of 19.8% from the year-ago reported figure. The same for revenues suggests growth of 10% from the year-ago reported number. The consensus mark for TT’s 2023 earnings has moved 0.6% north in the past 30 days.

The bottom line of APi Group outpaced estimates in three of the last four quarters and matched the mark once, the average surprise being 9.85%. The Zacks Consensus Estimate for APG’s 2023 earnings suggests an improvement of 13.5% from the year-ago reported figure. The consensus mark for revenues suggests growth of 7.9% from the year-ago reported number. The consensus mark for APG’s 2023 earnings has moved 0.7% north in the past 60 days.

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Trane Technologies plc (TT) : Free Stock Analysis Report

Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report

APi Group Corporation (APG) : Free Stock Analysis Report

Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report

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