In the latest trading session, SoFi Technologies, Inc. (SOFI) closed at $29.09, marking a -2.42% move from the previous day. This change lagged the S&P 500's daily loss of 0.55%. Elsewhere, the Dow saw a downswing of 0.19%, while the tech-heavy Nasdaq depreciated by 0.95%.
The company's shares have seen an increase of 14% over the last month, surpassing the Finance sector's gain of 2.06% and the S&P 500's gain of 3.64%.
Investors will be eagerly watching for the performance of SoFi Technologies, Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.08, indicating a 60% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $883.14 million, reflecting a 28.09% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.32 per share and a revenue of $3.43 billion, indicating changes of +113.33% and +31.73%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for SoFi Technologies, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. SoFi Technologies, Inc. currently has a Zacks Rank of #2 (Buy).
Looking at valuation, SoFi Technologies, Inc. is presently trading at a Forward P/E ratio of 93.66. This expresses a premium compared to the average Forward P/E of 13.3 of its industry.
We can also see that SOFI currently has a PEG ratio of 3.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 0.99.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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SoFi Technologies, Inc. (SOFI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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