Affirm Holdings, Inc. (AFRM) stock surged 5.03% in Wednesday's trading session, showcasing strong investor confidence in the company's growth prospects. The significant uptick comes as Zacks Investment Research highlighted Affirm as one of five must-buy growth stocks for April, citing its tremendous short-term upside potential.

Affirm's inclusion in this elite list is backed by its impressive financial performance and strategic initiatives. The company's fiscal second-quarter 2025 earnings significantly exceeded consensus estimates, demonstrating its ability to outperform market expectations. Affirm has achieved robust revenue growth through diverse income streams, including merchant network fees, interest from loans, and virtual card revenues. The company's expanding active merchant base, improving gross merchandise value, and growing average loan balances are key drivers behind its merchant network revenues and interest income.

Looking ahead, Affirm's growth trajectory appears promising. The company has forged key partnerships, including collaborations with Apple Pay and Hotels.com, which are playing a vital role in its expansion. Moreover, Affirm has officially entered the United Kingdom market through a partnership with Alternative Airlines, signaling its commitment to international growth. Analysts are bullish on Affirm's prospects, with Zacks projecting a revenue growth rate of 36.9% and an impressive earnings growth rate of 89.2% for the current fiscal year ending June 2025. The consensus estimate for current-year earnings has more than doubled in the past 60 days, reflecting growing optimism among analysts. With brokerage firms setting an average short-term price target representing a 64.4% increase from its recent closing price, Affirm stands out as a stock with significant upside potential in the near term.