Sign InSOFI Stock Shows Positive Signs Amid Bullish News and Technical Trends
Summary
Based on technical and fundamental factors, SOFI's stock price is predicted to continue its upward trend and approach its 52-week high of $10.23, making it a 'Hold' for investors, but caution is advised due to the negative profitability indicators and market uncertainty. (Analysis date: July 12, 2023)
Technical Analysis
SoFi Technologies, Inc. ("SOFI") closed at $9.2 on July 12, 2023, marking a 1.43% increase with a change of $0.13. The latest trading day saw a high of $9.38 and a low of $9. In light of annual variances, the stock has hit a year high of $10.23 and a year low of $4.24.
The volume of the stock stood at approximately 40.87 million, with an average volume of 52.77 million. The RSI14 at 58 carries implications of a neutral standpoint, providing no clear signals for investors from the technical perspective.
MA50 can provide information about a stock's course within a certain period. Here, a 50-day moving average at $6.98 indicates an upward trend for SOFI stock, given that the actual stock price is above this figure. Similarly, the stock's 200-day moving average of $5.90 confirms this positive trend. A positive MACD of 0.372123 for the last 3 months again supports this bullish indication.
Fundamental Analysis
SOFI had a market cap of $8.66 billion, indicating it larger it is, the more likely it is to have stable prices and not fluctuation wildly in a short period. The company's financial situation may cause some concern for investors considering it has a negative EPS of -$0.31 and a negative PE ratio of -29.68, indicating negative profitability for the company.
The DCF valuation of $10.78 suggests there is potential upside, given the DCF figure is greater than the most recent closing price. The target consensus of $10.12, the target median of $8, and the target high of $22 also suggests that financial analysts see potential for the stock to see growth in value, while a low target of $2.5 presents the possibility of a bearish outlook among some analysts.
Company News and Outlook
The recent news reports indicate a positive outlook for SOFI. The expectation of growth in Fintech stocks, statements from the CEO on becoming a top 10 financial institution, and the company's upcoming earnings report on July 31, 2023, all indicate a positive sentiment surrounding the stock. News on the end of the student loan moratorium could bring significant business to SOFI, while the company's progress beyond lending and into other areas suggests potential for diversified income streams and further growth.
Predicted Performance
Using this data, it is suggested that SOFI's stock price on the next trading day, July 13, 2023, could continue its upward trend, supported by technical and fundamental factors. For the upcoming week, given the positive news sentiment around the company and bullish technical indicators, the stock might even approach its 52-week high of $10.23, considering the positive growth trajectory.
Final Evaluation
Based on this analysis, SOFI stock is evaluated as a 'Hold' for investors. Despite the negative profitability indicators represented by the EPS and PE, the positive technical trends, bullish news sentiment, and expectations of growth within the Fintech sector suggest potential upside for this stock. However, given the high uncertainty and risk inherent in the market, investors are advised to keep a careful eye on the company's upcoming earnings report and industry trends in making an important decision about the investment.
