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SoFi Technologies, Inc. (SOFI) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest close session, SoFi Technologies, Inc. (SOFI - Free Report) was down 1.54% at $27.55. The stock's performance was behind the S&P 500's daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.48%.

Shares of the company witnessed a gain of 9.55% over the previous month, beating the performance of the Finance sector with its gain of 1.73%, and the S&P 500's gain of 2.87%.

Analysts and investors alike will be keeping a close eye on the performance of SoFi Technologies, Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.08, signifying a 60.00% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $883.14 million, up 28.09% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.32 per share and revenue of $3.43 billion, which would represent changes of +113.33% and +31.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SoFi Technologies, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. At present, SoFi Technologies, Inc. boasts a Zacks Rank of #2 (Buy).

Looking at valuation, SoFi Technologies, Inc. is presently trading at a Forward P/E ratio of 87.91. This denotes a premium relative to the industry average Forward P/E of 12.97.

Also, we should mention that SOFI has a PEG ratio of 3.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 1.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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