Chicago, IL – April 9, 2025 – Zacks Equity Research shares AFRM AFRM as the Bull of the Day and RH RH as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Chevron Corp. CVX and Exxon Mobil Corporation XOM.
Here is a synopsis of all four stocks.
AFRM is a Zack Rank #1 (Strong Buy) that is a financial services company that offers "buy now, pay later" solutions, allowing customers to make purchases and pay over time.
The company provides flexible payment plans, including interest-free options, across various merchants.
The stock was flying high just a couple months ago, but the recent market sell off has brought AFRM down to 6-month lows. This sell-off looks like a great opportunity for long-term investors to get exposure to the fintech space.
Affirm was founded in 2012 and is headquartered in San Francisco, California. The stock is valued at $12 billion, and the company employs 2,000.
The company provides flexible payment solutions through its platform, which includes a consumer-facing app, merchant commerce tools, and point-of-sale financing. Backed by partnerships with banks, Affirm enables customers to buy now and pay over time, without hidden fees or compounding interest.
Affirm's services power transactions for a diverse range of merchants, from small businesses to large enterprises, across sectors including travel, fashion, home goods, sporting equipment, electronics, and general retail.
The stock has a Zacks Style Score of “B” in Growth and “A” in Momentum. However, AFRM has an “F” score in Value.
The company last reported earnings back in February posting an EPS beat of 215%. With that. The company beat on revenues and raised guidance.
Q3 revenues are now seen at $755-785M, above the $773M expected. FY25 revenues were taken up to $3.13-3.19B v the $3.11B expected.
Active Merchants were 337.2K v the 323K last quarter while Active Consumers were 21M v the 19.5M last quarter.
Affirm’s management highlighted a record-breaking holiday season, with standout growth across key categories like third-party marketplaces (up 44%) and travel (up 42%), and a 113% year-over-year jump in Affirm Card GMV. A major driver was 70% growth in 0% APR GMV. The company is nearing profitability ahead of its target, citing strong operating leverage, resilient unit economics, and confidence in navigating high-rate environments. Leadership emphasized Affirm’s competitive edge in credit performance, merchant trust, and consumer experience.
The company has seen analyst estimates go higher across most time frames.
For the current quarter, estimates have gone from -$0.15 to -$0.07 over the last 90 days. Next quarter, the move has stayed flat over the last 90 days, with analysts seeing $0.09.
For the current year, estimates have jumped from $-0.55 to -$0.10 since that earnings report. And for next year, estimates have gone from $0.50 to $0.61. This is a move of 18% over the last 90 days.
Affirm Holdings, Inc. price-consensus-chart | Affirm Holdings, Inc. Quote
Since earnings, there have been a handful of firms reiterating their buy ratings:
BMO Capital Markets resumed AFRM with Outperform, with a price target of $69.
Goldman Sachs reiterated AFRM with Buy with a price target of $56.
TD Cowen initiates AFRM with Buy and a price target of $50.
AFRM started the year strong, moving from $50-80 in the first six weeks. However, the stock has seen a violent correction with the recent market weakness.
The stock looks to have bottomed around the $30 area and is starting to bounce. There seems to be more meat on the bone here with the moving averages significant above current trading levels.
Let’s take a look at some potential resistance:
21-day: $46.00
200-day: $48.25
50-day: $57.20
Fibonacci resistance: $62
While the stock might find a hard time lifting with the ongoing market weakness. Investors should keep an eye on these levels for profit taking.
Affirm is showing strong momentum as it nears profitability, backed by robust revenue growth, expanding user and merchant bases, and increasing analyst confidence.
With a record-setting holiday quarter, raised guidance, and improving estimates, the company is proving its ability to thrive even in a higher-rate environment.
While the stock has pulled back from its early-year highs, the recent bounce and positive technical setup suggest further upside potential. For investors seeking growth and momentum in the fintech space, AFRM is a name worth watching closely.
RH is a Zacks Rank #5 (Strong Sell) that operates as a retailer and lifestyle brand in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bath ware, décor, outdoor and garden, baby, child, and teen furnishings.
The company faces headwinds from tariffs and a slumping stock market. And if that was not enough, the stock just dropped over 40% and earnings last week.
While this might be a bargain in the long-run, investors should be cautious as the stock likely is in store for a rough 2025.
RH, formerly known as Restoration Hardware Holdings, Inc., rebranded in 2017 and is headquartered in Corte Madera, California.
Founded in 1980, the company markets its luxury home furnishings through multiple channels, including its website, hospitality spaces, sourcebooks, trade and contract programs, and a network of RH Galleries, outlet stores, guesthouses, Interior Design offices, and Waterworks showrooms.
RH is valued at $3 billion and has a Forward PE of 15. The stock holds Zacks Style Scores of “F” in Growth and “D” in Value.
RH reported earnings on April 2nd, seeing a17% EPS miss. The company also posted a revenue miss and guided FY25 revenue growth +10-13%.
Management struck a cautious tone looking forward, pointing to a riskier business environment shaped by macroeconomic pressures and ongoing tariff uncertainty. Tariffs from key sourcing countries like China, Canada, and Mexico remain a major headwind, with the potential to shift quickly. Some rates may drop from 45% to 25%, but timing and policy direction remain unclear.
While RH is attempting to mitigate these pressures through supplier negotiations and by leveraging its scale, the unpredictability of tariffs continues to weigh on margins and adds complexity to near-term planning.
The stock dropped from the $240 level all the way to $123 the next day. It has since bounced 40 points, but investors might want to take off risk as analysts lower their earnings estimates.
Since reporting earnings, estimates have fallen off a cliff.
Over the last 7 days, analysts have taken numbers down a staggering 79% for the current quarter. The drop, from $1.43 to $0.30, reflects the short-term pain.
But the trouble continues, with next quarter's numbers falling 10%, going from $3.95 to $3.56.
The current year’s estimates go from $13.26 to $11.00, or a drop of 17%.
Next year, numbers over the last 7 days have gone from $19.89 to $15.92, a 20% reduction in the consensus.
The stock is trading at lows not seen since COVID. From those lows in 2020, the stock shot to $744, but has fallen to the $150 area. This 80% drop from highs looks like a bargain, but investors should watch the technical levels before feeling comfortable getting on the long side.
The 21- day MA is $220, while the 50-day $302 and the 200-day is $318. Those levels are likely going to come down over time so keep an eye on those long-term for an entry.
But for now, the stock just fell into a “Death Cross” which is when the 50-day falls below the 200-day. If there is further pressure on the market and RH, the COVID lows under $80 could be in play. So with that risk on the table, investors need to shy away.
While RH may eventually present a long-term value opportunity, the near-term outlook remains highly uncertain. Tariff volatility, falling earnings estimates, and technical weakness—highlighted by a recent death cross—paint a bearish picture for the stock in 2025.
With analysts slashing forecasts and macroeconomic headwinds mounting, investors are likely better off staying on the sidelines until clearer signs of stabilization emerge.
President Donald Trump’s recently imposed tariff has rattled the equity market. The question in everybody’s mind is whether the tariffs will be in place for an extended period. If the tariffs stick around for a while, U.S. spending across all businesses will probably take a hit in the face of increased prices. Eventually, there will be a contraction in the American economy. If there is a slowdown, then energy demand will go down, which could weigh heavily on the business performance of most energy companies.
Now, these are still assumptions, and nobody is sure of what is going to happen, thereby fueling ambiguity. Amid the uncertain and turbulent energy business, should energy investors keep a close eye on energy giants like Chevron Corp. and Exxon Mobil Corporation?
Integrated energy companies are relatively less prone to uncertain business scenarios. This is because when their upstream business suffers from low oil prices, they can keep afloat by banking on their downstream operations. If these companies have strong balance sheets, they can confidently leverage their financial strength to avail loans during uncertain times at favorable rates, maintaining their operational stability even during turbulent times.
Chevron
Chevron, currently carrying a Zacks Rank #3 (Hold), is among the integrated energy giants with a presence in both the upstream and downstream energy spaces. In the low-cost Permian – the most prolific basin in the United States – CVX has a strong footprint, which will likely aid the company’s production growth in the long run. Chevron’s capital discipline is also noteworthy, as this will pave the way for considerable cash flow generation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, CVX can likely navigate the current energy market uncertainty with confidence, backed by its strong balance sheet and integrated business model. Chevron’s debt-to-capitalization is at 13.8%, considerably lower than the 29% of the composite stocks belonging to the industry.
ExxonMobil
ExxonMobil is the largest non-government integrated energy company in the world. In the prolific Permian and Guyana resources, XOM has a solid pipeline of profitable projects, securing a healthy production outlook.
XOM with a Zacks Rank of 3 also has a strong balance sheet that it can rely on to sail through the current turbulent tariff-induced business environment. ExxonMobil’s debt-to-capitalization is 13.4%, which is also at a very low level and, hence, is significantly below the industry.
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