5 Best Growth Stocks to Buy With Highest Upside Potential

​3. Affirm Holdings, Inc. (NASDAQ:AFRM)

Number of Hedge Fund Holders: 63

Analyst Upside Potential: 75.11%

​Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the Best Growth Stocks to Buy With Highest Upside Potential. The Street has a bullish sentiment on Affirm Holdings, Inc. (NASDAQ:AFRM) as 27 of the 34 analysts covering the stock maintain a Buy rating. Moreover, the analyst’s average 12-month price target suggests more than 75% upside from the current level.

​Recently, on March 31, TD Cowen lowered the firm’s price target on the stock from $95 to $80, while maintaining a Buy rating on the stock. The firm cited that they reduced price targets among the consumer finance group as part of their Q1 earnings preview. TD Cowen highlighted that the macro environment has created uncertainty among investors. Moreover, the AI’s impact on employment and the increased gas prices are also creating headwinds for low-income consumers. Despite lowering the price target, TD Cowen named Affirm as one of its top picks in the sector.

​Earlier on March 18, Mizuho had reiterated an Outperform rating on Affirm Holdings, Inc. (NASDAQ:AFRM) with a price target of $95. The firm addressed concerns from a Wall Street Journal report on Stone Ridge limiting redemptions on a fund holding Affirm loans. The firm highlighted strong investor demand for Affirm’s loans, noting an asset-backed securities (ABS) issuance was upsized from $500 million to $750 million. Mizuho emphasized Affirm’s short loan durations as an enabler of quick underwriting adjustments to macroeconomic or geopolitical shocks, alongside stable delinquency rates.

Affirm Holdings, Inc. (NASDAQ:AFRM) operates a payment network across Canada, the United States, and internationally. The company’s platform includes a consumer-focused app, a point-of-sale payment solution for consumers, and merchant commerce solutions. It offers BNPL loans, payment solutions, and financial services to consumers and merchants. It was incorporated in 2012 and is based in San Francisco, California.