We recently published a list of Jim Cramer Latest Lightning Round: Top 10 Stocks to Watch. Since Affirm Holdings Inc (NASDAQ:AFRM) ranks 9th on the list, it deserves a deeper look.
Jim Cramer in a latest program on CNBC talked about the latest rebound in the market.
“Never get tired of all-time highs. We are experiencing a time for the market which is what I said would happen when the Fed starts cutting rates when the economy is still solid.”
Cramer said that the key reason the market roared to highs was strong earnings from top banks. He said since the Fed’s interest rate cuts have just started, investors believe maybe the “best is yet to come.”
Jim Cramer wondered whether this strong performance trend would be a “pattern” in this earnings season.
“We will find out soon enough. We will see if the positive action will be sustained.”
Cramer recommended investors to “listen to the calls” this earning season and “ponder a moment, and only then should you pull the trigger.”
“We are at the beginning of one of the year’s four reporting periods. Probably the most exciting. I can’t believe I still get fired up, but man, am I ever.”
For this article, we watched the latest episodes of Jim Cramer’s ‘Lightning Round’ segment on CNBC and picked 10 stocks he was talking about. With each company, we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Source:pixabay
Affirm Holdings Inc (NASDAQ:AFRM)
Number of Hedge Fund Investors: 34
A caller recently asked Jim Cramer about Affirm Holdings Inc (NASDAQ:AFRM). Here is what he said:
“A lot of people feel it’s related to rates. I think it’s related to the honest ability to be able to judge people’s credit, give them credit, and then watch and see how well they do. Buy now, pay later, Max (Affirm CEO) loves it. I had Max on. I truly enjoy Max. I get along with him. I have to admit I’ve done some charitable stuff in his orientation. And all I can tell you is that I think he’s good to go. I like the stock very much.”
Affirm Holdings Inc (NASDAQ:AFRM) is a key player in the Buy Now Pay Later (BNPL) market. Wells Fargo recently upgraded it from Equal-weight to Overweight. While still considered expensive for a start-up that is not yet profitable, there have been notable improvements in cash flow and adjusted operating margins, making the current price attractive for buyers. Wall Street expects Affirm Holdings Inc (NASDAQ:AFRM)’s revenue to grow about 30% in FY2025 and at a 3-year revenue CAGR of 25% through FY2027.
The stock’s price-to-sales (P/S) ratio stands at 4.9, which is fairly reasonable considering the expected 30% revenue growth in FY2025. Additionally, the P/S to Growth ratio is just 0.2, indicating a low valuation for a company with strong growth potential.
Overall, Affirm Holdings Inc (NASDAQ:AFRM) ranks 9th on Insider Monkey’s list titled Jim Cramer Latest Lightning Round: Top 10 Stocks to Watch. While we acknowledge the potential of Affirm Holdings Inc (NASDAQ:AFRM), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AFRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.