Yahoo Finance Why AvidXchange Holdings, Inc. (AVDX) Outpaced the Stock Market Today
The latest trading session saw AvidXchange Holdings, Inc. (AVDX) ending at $11.66, denoting a +1.04% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.49%.
The company's stock has climbed by 7.65% in the past month, exceeding the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 3.22%.
The investment community will be closely monitoring the performance of AvidXchange Holdings, Inc. in its forthcoming earnings report. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $106.32 million, up 16.64% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.22 per share and a revenue of $445.05 million, indicating changes of +214.29% and +16.9%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for AvidXchange Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. AvidXchange Holdings, Inc. currently has a Zacks Rank of #3 (Hold).
Looking at valuation, AvidXchange Holdings, Inc. is presently trading at a Forward P/E ratio of 51.87. This denotes a premium relative to the industry's average Forward P/E of 29.56.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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AvidXchange Holdings, Inc. (AVDX) : Free Stock Analysis Report
