$AFRM's Winning Streak: Trader Robot's +4.79% Weekly Growth
These bots, accessible through the "Swing trader: Deep Trend Analysis (TA)" platform, recently demonstrated their prowess by achieving a remarkable +4.79% gain while trading AFRM (Affirm Holdings Inc.) over the course of the previous week. In a market characterized by volatility and uncertainty, this achievement is noteworthy and warrants a closer look at the factors contributing to this success.
Bearish Trends and Downward Momentum
AFRM, a notable player in the packaged software industry, experienced a concerning -7.64% downward trend, declining for three consecutive days on September 20, 2023. Traditionally, a stock moving lower for three straight days is considered a bearish sign. Investors and traders are advised to monitor this stock closely, as historical data indicates a high likelihood of further declines. In fact, historical data reveals that in 164 out of 186 instances where AFRM declined for three days, the price continued to decline further within the following month. This suggests an 88% probability of a continued downward trend.
Earnings Resilience Amidst Market Turmoil
One key factor that sets AFRM apart in this challenging market environment is its recent earnings report. Released on August 24, the report showed earnings per share (EPS) of -68 cents, significantly outperforming the estimated EPS of -87 cents. This positive earnings surprise showcases the company's resilience in the face of adverse market conditions. With 9.05 million shares outstanding, AFRM currently boasts a market capitalization of 7.49 billion USD.
Industry Overview: Packaged Software
Understanding the broader context within which AFRM operates is essential. The packaged software industry encompasses various software programs bundled together and sold as a group. For instance, Microsoft Office includes popular applications such as Excel, Word, and PowerPoint. Notable American players in this industry include Microsoft Corporation, Oracle Corp., and Adobe.
Market Capitalization Comparison
When assessing AFRM's market capitalization, it's important to compare it to industry averages. The average market capitalization across the packaged software industry stands at 8.25 billion USD. Within this industry, market capitalizations range from 291 million USD to a staggering 2.38 trillion USD. Microsoft Corporation (MSFT) holds the highest valuation at 2.38 trillion USD, while the lowest valued company is BLGI at 291 million USD. AFRM's market capitalization of 7.49 billion USD positions it within the mid-range of industry peers.
Price Trends in the Packaged Software Industry
Taking a broader perspective on the packaged software industry, we observe notable price trends. On average, weekly price growth across all stocks in the industry was -2%, indicating a degree of volatility. The monthly trend is similarly negative, with an average growth rate of -2%. However, over a quarterly horizon, the industry saw an average price growth of 3%, suggesting some resilience in the face of short-term fluctuations.
It's also important to note that individual companies within the industry experienced substantial price variations. For instance, NAHD witnessed the highest price growth at an impressive 721%, while AJIA experienced the most significant fall at -81%.
Volume Dynamics in the Packaged Software Industry
Volume is a crucial aspect of stock market analysis. Across all stocks in the packaged software industry, the average weekly volume growth was 52%. On a monthly basis, the average volume growth increased to 72%, highlighting potential trading opportunities. Over a quarter, the industry exhibited even stronger volume dynamics, with an average growth rate of 87%. These statistics suggest that market participants are actively engaged in trading within this sector.
In summary, the recent performance of AI trading robots trading AFRM amid a challenging bearish market underscores the potential of algorithmic trading strategies. Investors should closely monitor AFRM's future price movements, given the historical propensity for extended declines in such scenarios. Additionally, the positive earnings report demonstrates the company's ability to weather market turmoil. When assessing AFRM's market capitalization and price trends, it becomes evident that it operates within a dynamic industry marked by both challenges and opportunities. Furthermore, the substantial volume growth within the packaged software industry indicates ongoing interest from traders and investors, making it a sector worth watching closely in the coming months.
AFRM's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Indicator for AFRM moved out of overbought territory on December 05, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 instances where the indicator moved out of the overbought zone. In of the 28 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AFRM as a result. In of 63 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AFRM turned negative on December 09, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 33 similar instances when the indicator turned negative. In of the 33 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AFRM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where AFRM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AFRM advanced for three days, in of 234 cases, the price rose further within the following month. The odds of a continued upward trend are .
AFRM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 172 cases where AFRM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AFRM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.055) is normal, around the industry mean (31.078). P/E Ratio (0.000) is within average values for comparable stocks, (160.694). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.755). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (5.495) is also within normal values, averaging (58.228).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AFRM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
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Industry PackagedSoftware