Time to Buy SoFi Technologies Stock for Higher Highs?

Etching out fresh 52-week highs in the past few trading sessions, SoFi Technologies SOFI stock has been a standout among the financial sector. As a member-centric, one-stop shop for financial services, SoFi is benefiting from several positive catalysts that have lifted investor sentiment.   

Sitting on +30% gains in 2025, SoFi stock has now soared over +200% in the last three years, hitting another 52-week high of $20 a share on Tuesday.

Edging closer to an all-time peak of $25 a share, let’s see if SoFi stock is in store for higher highs.

SoFi’s Aggressive Growth Targets

The primary catalyst behind bullish sentiment for SoFi stock has been the company’s aggressive growth targets, as management is aiming for 30% member growth and 20% revenue growth, with the goal of reaching over $3 billion in revenue this year.

At the end of Q1, SoFi reported a record 10.9 million subscribers, spiking 34% from the comparative quarter. Notably, SoFi will be reporting its Q2 results on Tuesday, July 29. Based on Zacks' projections, SoFi’s total sales are currently expected to rise 25% in fiscal 2025 to $3.29 billion compared to $2.61 billion last year. Plus, FY26 sales are projected to soar another 19% to $3.93 billion.

Policy Shits & Crypto Comeback

Helping to boost SoFi’s outlook is that proposed federal caps on graduate student loans will most likely push borrowers toward private lenders, expanding the company’s market share. Furthermore, investor interest has piqued with SoFi announcing it will re-enter the cryptocurrency market with plans to offer trading, staking, and crypto-backed loans.

Strategic Partnerships & Institutional Ownership

Key partnerships have also been a strong driver of SoFi’s expansion, including with Capitalize Inc. for 401(k) rollovers and other retirement services. SoFi has also expanded loan platform agreements with Fortress Investment Group, boosting its lending capacity.

While they aren’t traditional partners, institutions like BlackRock BLK, State Street STT, and Vanguard Group have taken up significant stakes in SoFi, influencing the fintech firm's strategic direction and signaling strong confidence in regard to its business model. Overall, institutional ownership of SoFi shares is at over 40%.

Monitoring SoFi’s Balance Sheet

Still in the beginning stages of its corporate life after going public in 2021, monitoring SoFi’s balance sheet will be crucial for the time being. Optimistically, SoFi has $2.71 billion in cash & equivalents and $37.74 billion in total assets, which is above its total liabilities of $31.07 billion.

Conclusion & Final Thoughts

There is a lot to like about SoFi Technologies' stock at the moment, but for now, SOFI lands a Zacks Rank #3 (Hold) after such an extensive rally. That said, SoFi is shaping up to be a very viable long-term investment and is moving further past the probability line.

However, SOFI is currently trading at a 70X forward earnings multiple, and better buying opportunities could be ahead despite the company’s aggressive growth targets starting to justify investors paying a premium.

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This article originally published on Zacks Investment Research (zacks.com).

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