In the latest trading session, SoFi Technologies, Inc. (SOFI) closed at $14.43, marking a -3.15% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq depreciated by 0.91%.
The company's stock has climbed by 7.04% in the past month, exceeding the Finance sector's loss of 0% and the S&P 500's gain of 1.44%.
The investment community will be paying close attention to the earnings performance of SoFi Technologies, Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.06, reflecting a 500% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $803.09 million, showing a 34.53% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.27 per share and revenue of $3.29 billion, indicating changes of +80% and +26.15%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for SoFi Technologies, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.81% lower. SoFi Technologies, Inc. is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, SoFi Technologies, Inc. is currently being traded at a Forward P/E ratio of 54.49. Its industry sports an average Forward P/E of 11.84, so one might conclude that SoFi Technologies, Inc. is trading at a premium comparatively.
It's also important to note that SOFI currently trades at a PEG ratio of 2.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 93, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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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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