SOFI stock: SoFi is a battered and promising company that you can buy at low prices

  • Sofi Technologies (SOFI) has good activity and strong growth.
  • But SOFI stock has performed poorly, down more than 60% since the start of the year.
  • If you’re in it for the long haul, this might be a good entry point.

Credit: Michael Vi/Shutterstock

Sofi Technologies (NASDAQ:SOFI) is a digital financial services company, which means that almost all of its services are offered and performed over the Internet. This is a very disruptive and promising business – and very competitive, although it is still in its early stages of development.

SOFI shares were selling in the mid $20s in February 2021; the stock has recently struggled to stay above $6 per share. Will the stock reverse course and rise again? There’s no guarantee, but I think there’s a good enough chance that risk-tolerant long-term investors will see this as a good entry point.

SOFI Sofi Technologies $6.39

SoFi helps people achieve their goals

SoFi Technologies’ operations include large scale financial services, lending business and its technology platform.

The Company, among other businesses, offers student loan refinance, medical/dental resident refinance, parent PLUS refinance, healthcare professional refinance, law and MBA refinance, private student loans, undergraduate students, graduate student loans, personal loans, parents student loans and law and MBA loans.

As reported by Yahoo.com, SOFI says their suite of services “helps people achieve financial independence achieve their ambitions. Our borrowing, saving, spending, investing and protecting products give our more than three and a half million members quick access to tools to get their money’s worth.

SOFI, in its financial services segment, allows its members to try to make their money grow by investing and allowing its members to borrow money, save money and use the money other ways. SOFI also states that “Membership includes the essentials for progressing, including career counselors and connection to a thriving community of ambitious people.

SOFI is popular with millennials, which could be a real boon for the future. As reported by talkmarkets.com, Adam Johnson said, “SoFi’s 2.5 million customers are primarily millennials and Generation Xers with solid credit, who consider themselves digital natives and seek complete control of their their finances from a trusted mobile device. And since they rely on SOFI for their products and services, it will create margin expansion and help their revenue.

Johnson, portfolio manager for the Adviser Investments American Ingenuity strategy and editor of the Bullseye Pantiessaid he favors quality in new small-cap companies due to rising interest rates. He expects SoFi to make $1.5 billion in revenue this year, which would represent a 50% growth rate from last year, and estimated that SOFI would become profitable in 2022, or if not, in 2023.

Johnson also says management is “very genealogical and seems to have the goodwill of Wall Street, a noted positive for a newly listed company.” Good management can take a business very far.

SOFI past benefits and future prospects.

Michael Miller from the morning starfollowing SoFi’s March earnings report, said “the main driver of business growth was strong personal loan volume, with origination volume up 168% versus last year.” last year quarter at $1.65 billion.”

Miller wrote that there is strong momentum in the SOFI financial services segment. He wrote that “SoFi Money and SoFi Invest account counts increased by 275,633 and 361,616 during the quarter to 1.44 million and 1.59 million, respectively. This growth represented an increase of 123%. »

SoFi investment accounts grew 200% year over year. User growth and new product growth increased, resulting in financial services revenue growing 440% year-over-year.

Miller wrote that SOFI met its revenue guidance for the fourth quarter of 2021 with a 54% year-over-year increase. For these reasons, Morningstar maintained its estimate of the “fair value” of SOFI shares at $20 per share.

The 12 analysts surveyed by TipRanks give us an average $14.86 price target, with a high forecast of $22 and a low forecast of $10. The average price target is over 130% higher than its current price of $6.39. The site also rates it as a moderate buy.

So, there are experts saying to buy SoFi stocks. And the price is near a 52-week low.

Is SOFI Stock a buy?

In this market environment, fraught with worries about war, rising interest rates and possible economic downturns, it is difficult for a company with negative results, such as SOFI, to move forward, even with a good outlook.

However, SOFI shares could be bought here for investors with long horizons, who understand the risk and find it difficult to calculate a downside on a company with negative earnings, could see this as an excellent long-term entry point. . SOFI has long-term appeal, and if one is willing to own the stock and accept the risk, the price could be a bargain.

As of the date of publication, Max Isaacman had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Max Isaacman is a representative investment advisor in San Francisco. He was a representative of Merrill Lynch and vice-president of Lehman Brothers. His books on investing have been published by McGraw-Hill and Financial Times Press, including the first book on ETFs, How to be an Index Investor (McGraw-Hill, 2000). He wrote for the Emmy-winning website Minyanville.com. His email is [email protected]

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