Why AvidXchange Holdings, Inc. (AVDX) Outpaced the Stock Market Today

The latest trading session saw AvidXchange Holdings, Inc. (AVDX) ending at $11.09, denoting a +0.64% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.29%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.43%.

The the stock of company has fallen by 10.55% in the past month, lagging the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of AvidXchange Holdings, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on February 28, 2024. The company's upcoming EPS is projected at $0, signifying a 100% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $98.64 million, up 14.45% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AvidXchange Holdings, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, AvidXchange Holdings, Inc. boasts a Zacks Rank of #1 (Strong Buy).

With respect to valuation, AvidXchange Holdings, Inc. is currently being traded at a Forward P/E ratio of 89.96. Its industry sports an average Forward P/E of 34.92, so one might conclude that AvidXchange Holdings, Inc. is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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