SoFi Technologies, Inc. (SOFI) Declines More Than Market: Some Information for Investors

SoFi Technologies, Inc. (SOFI) closed at $18.22 in the latest trading session, marking a -1.57% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.

Shares of the company have appreciated by 2.27% over the course of the past month, outperforming the Finance sector's gain of 1.52%, and the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of SoFi Technologies, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.17, up 54.55% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.24 billion, indicating a 31.08% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.6 per share and a revenue of $4.87 billion, signifying shifts of +53.85% and +35.52%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for SoFi Technologies, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. As of now, SoFi Technologies, Inc. holds a Zacks Rank of #3 (Hold).

Investors should also note SoFi Technologies, Inc.'s current valuation metrics, including its Forward P/E ratio of 30.71. This indicates a premium in contrast to its industry's Forward P/E of 11.33.

We can additionally observe that SOFI currently boasts a PEG ratio of 1.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 1.16.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 39% echelons 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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This article originally published on Zacks Investment Research (zacks.com).

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