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These Beaten Down Finance Stocks Should Stay on Your Radar
Key Takeaways
HOOD and SOFI have seen rough price action over recent months.
Both companies are still seeing strong platform momentum.
Valuation multiples have come back down to earth amid the tough stretch.
Both Robinhood (HOOD - Free Report) and SoFi (SOFI - Free Report) have faced notably rough price action over recent months, well off their previous all-time highs. But given the tough stretch, should they still warrant a watchlist spot?
HOOD Posts Record-Breaking Results
Robinhood’s latest quarterly results broke records across several key metrics. Revenue grew by 26.5% year-over-year to a record $1.3 billion, whereas adjusted EPS was up a similarly strong 22% from the year-ago period.
Robinhood Gold subscribers grew by 58% year-over-year to 4.2 million, with average revenue per user (ARPU) also climbing 16% year-over-year. Activity was broadly strong across its platform, with options and equities volumes both reflecting quarterly records.
EPS expectations for its current fiscal year have been soft since February, likely explaining a fair chunk of the poor price action. While the downward revisions are important to keep in mind, the $2.31 FY26 EPS estimate still remains nearly 40% higher since last March. Revisions for its next fiscal year also remain positive, as shown below.
Image Source: Zacks Investment Research
Shares do remain a tad rich from a valuation perspective, but the current 32.6X forward 12-month earnings multiple ranks as the lowest we’ve seen since the beginning of 2025. The stock is certainly one to keep a close eye on given the platform’s broader momentum, with the recent price action also bringing things back down to earth. Continued upward revisions would be key for the stock to get out of its rut, with the current price nowhere near the lofty $155 all-time highs we saw last October.
SoFi Reports Multiple Records
SoFi also came out swinging strong in the latest release, posting record New Member additions of 1.0 million, reflecting a 35% year-over-year climb. Total fee-based revenue shot 50% higher from the year-ago period to $443 million, whereas total loan originations also reached a record $10.5 billion, growing 46% YoY.
More specifically, personal loan originations of $7.5 billion were an all-time high, with home loan originations of $1.1 billion also reflecting a record. As reflected by these results, consumers undoubtedly find the company’s offerings attractive, with the company also becoming the first nationally chartered bank to launch crypto trading for consumers.
Similar to HOOD, the stock has seen a huge drop from previous all-time highs of roughly $33 per share seen back in last November, with the current 28.8X forward 12-month earnings multiple much more tolerable relative to the 70.5X 2026 high.
EPS expectations for its current and next fiscal years also remain largely stable and bullish, as shown below.
Image Source: Zacks Investment Research
Putting Everything Together
While both Robinhood (HOOD - Free Report) and SoFi (SOFI - Free Report) have been beaten down from all-time highs, the reality is that both platforms are still seeing strong growth momentum. EPS revisions for their current and next fiscal years remain positive and bullish, with valuation multiples also coming back down to earth. Both stocks definitely deserve a close eye, with positive guidance in their next set of quarterly results likely to turn recent share weakness around.
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These Beaten Down Finance Stocks Should Stay on Your Radar
Key Takeaways
Both Robinhood (HOOD - Free Report) and SoFi (SOFI - Free Report) have faced notably rough price action over recent months, well off their previous all-time highs. But given the tough stretch, should they still warrant a watchlist spot?
HOOD Posts Record-Breaking Results
Robinhood’s latest quarterly results broke records across several key metrics. Revenue grew by 26.5% year-over-year to a record $1.3 billion, whereas adjusted EPS was up a similarly strong 22% from the year-ago period.
Robinhood Gold subscribers grew by 58% year-over-year to 4.2 million, with average revenue per user (ARPU) also climbing 16% year-over-year. Activity was broadly strong across its platform, with options and equities volumes both reflecting quarterly records.
EPS expectations for its current fiscal year have been soft since February, likely explaining a fair chunk of the poor price action. While the downward revisions are important to keep in mind, the $2.31 FY26 EPS estimate still remains nearly 40% higher since last March. Revisions for its next fiscal year also remain positive, as shown below.
Image Source: Zacks Investment Research
Shares do remain a tad rich from a valuation perspective, but the current 32.6X forward 12-month earnings multiple ranks as the lowest we’ve seen since the beginning of 2025. The stock is certainly one to keep a close eye on given the platform’s broader momentum, with the recent price action also bringing things back down to earth. Continued upward revisions would be key for the stock to get out of its rut, with the current price nowhere near the lofty $155 all-time highs we saw last October.
SoFi Reports Multiple Records
SoFi also came out swinging strong in the latest release, posting record New Member additions of 1.0 million, reflecting a 35% year-over-year climb. Total fee-based revenue shot 50% higher from the year-ago period to $443 million, whereas total loan originations also reached a record $10.5 billion, growing 46% YoY.
More specifically, personal loan originations of $7.5 billion were an all-time high, with home loan originations of $1.1 billion also reflecting a record. As reflected by these results, consumers undoubtedly find the company’s offerings attractive, with the company also becoming the first nationally chartered bank to launch crypto trading for consumers.
Similar to HOOD, the stock has seen a huge drop from previous all-time highs of roughly $33 per share seen back in last November, with the current 28.8X forward 12-month earnings multiple much more tolerable relative to the 70.5X 2026 high.
EPS expectations for its current and next fiscal years also remain largely stable and bullish, as shown below.
Image Source: Zacks Investment Research
Putting Everything Together
While both Robinhood (HOOD - Free Report) and SoFi (SOFI - Free Report) have been beaten down from all-time highs, the reality is that both platforms are still seeing strong growth momentum. EPS revisions for their current and next fiscal years remain positive and bullish, with valuation multiples also coming back down to earth. Both stocks definitely deserve a close eye, with positive guidance in their next set of quarterly results likely to turn recent share weakness around.