Why the Market Dipped But SoFi Technologies, Inc. (SOFI) Gained Today

SoFi Technologies, Inc. (SOFI) closed at $17.65 in the latest trading session, marking a +1.91% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.48%. Elsewhere, the Dow saw a downswing of 0.29%, while the tech-heavy Nasdaq depreciated by 0.56%.

Prior to today's trading, shares of the company had lost 5.3% lagged the Finance sector's loss of 0.73% and the S&P 500's loss of 0.82%.

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. Meanwhile, the latest consensus estimate predicts the revenue to be $1.24 billion, indicating a 31.08% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.6 per share and revenue of $4.87 billion, which would represent changes of +53.85% and +35.52%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SoFi Technologies, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.52% upward. Currently, SoFi Technologies, Inc. is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, SoFi Technologies, Inc. is presently trading at a Forward P/E ratio of 28.73. This expresses a premium compared to the average Forward P/E of 11.74 of its industry.

Meanwhile, SOFI's PEG ratio is currently 1.44. 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. By the end of yesterday's trading, the Financial - Miscellaneous Services industry had an average PEG ratio of 1.09.

The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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SoFi Technologies, Inc. (SOFI): Free Stock Analysis Report

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

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