Sign InSummary
Despite recent stock performance facing downside, SoFi Technologies, Inc. demonstrates a positive trend of growth, but with negative earnings and price-to-earnings multiples, careful consideration is necessary before making a decision about this stock; upcoming earnings announcement and news sentiment will provide more clarity on the company's financial health and future direction, but it is difficult to take a strong stance until after the earnings announcement on July 31, 2023.
Fundamental Analysis
SoFi Technologies, Inc. (SOFI) is a company traded on the NASDAQ Exchange with a market capitalization of around $8.55 billion. Despite having a substantial number of shares outstanding, approximately 940.90 million, the company's stock performance recently faced some downside. The last close on July 27, 2023, was $9.09, exhibiting a 4.52% drop compared to the prior trading session.
Notably, the company has demonstrated an impressive trend of growth in recent years. Yet, the negative earnings per share (EPS) of -$0.31 and the negative price-to-earnings (PE) multiple of -29.32 indicate that the company is not currently profitable. Therefore, careful consideration is necessary before making a decision about this stock.
The upcoming earnings announcement scheduled for July 31, 2023, should provide a clearer picture of the company's financial health. Given recent news about the company's growth avenues and the likely year-over-year increase in earnings and revenues, investors can expect some positive changes.
Technical Analysis
The Relative Strength Index (RSI14) stands at 66, which suggests that the SOFI stock is nearing overbought conditions. Furthermore, the Moving Average Convergence Divergence (MACD) of 0.24 over the last 3 months suggests that the stock is in a bullish phase.
Despite the recent decline, the prices exhibit an upward trend with the 50-day moving average at $7.89 and the 200-day moving average at $6.13, both below the last closing price. The yearly swing between the high and low prices ($10.23 and $4.24, respectively) reveals high price volatility.
Price Predictions Based on Analysts' Targets
Analysts' predictions for SoFi range between a high target of $22.00 to a low of $2.50. The median and consensus targets stand at $8.00 and $10.00, respectively. With the last closing price at $9.09, and considering the analysts' targets, the stock appears to be trading near its expected price range.
News Sentiment
Recent news articles suggest several reasons to buy SoFi stock, including broad product assortment and efficient marketing. With the resumption of federal student loan repayments, the platform could potentially see an upswing in utilization. However, some sources caution investors to wait for potential price drops before investing.
Stock Forecast and Evaluation
Considering the fundamental and technical analysis and recent news sentiment, it's difficult to take a strong stance until after the earnings announcement on July 31, 2023.
In the short term, based on technical indicators like RSI and MACD, the stock might see some upside on July 28, 2023, but considering the near overbought conditions, caution is necessary. For the upcoming week, the combination of the earnings announcement and news-driven momentum could push the stock towards the analysts' consensus target price of $10.00.
In conclusion, given the volatility, negative earnings, and upcoming earnings announcement, the stock can be considered a "Hold" for now. Investors should closely monitor the upcoming earnings release and reassess their investment decision accordingly.
