SoFi Technologies is Thursday's selection for IBD 50 Stocks To Watch from Investor's Business Daily as a strong rebound from its 10-week moving average could present an early entry.
SoFi Technologies currently is testing its 10-week line, according to IBD MarketSurge. The fintech broke out of a cup base at a buy point of 10.49 in October last year and rallied before retreating in recent weeks. As of Wednesday's closing price, shares had gained 145% since the October breakout.
SoFi Technologies offers a platform and digital tools for banking and loans. The company also offers insurance and credit card services along with investment services.
On Friday, the company announced it would offer some option strategies such as covered calls and cash-secured puts to eligible members.
SoFi Stock: Raising Expectations
SoFi Technologies has been profitable over the past seven quarters. It reported triple-digit earnings growth in the three most recent reporting periods. Sales growth has been steady, ranging between 19% and 43% over the past eight quarters.
Growth picked up in the second quarter, which ended June 30. Earnings accelerated from the prior quarter and grew 700% to 8 cents per share. Sales also picked up and grew 43% to $855 million. The company is due to report third-quarter results on Oct. 28.
In the second-quarter report, the company raised its net revenue outlook for the full year to $3.375 billion, up from its prior forecast of $3.27 billion. Annual sales are seen growing 30%.
Analyst estimates suggest earnings growth of 109% for 2025 or 31 cents in earnings per share. For 2026, earnings estimates have been revised higher to 56 cents per share, marking 79% year-over-year growth.
Membership is seen growing 30% from 2024 as well. During the second quarter, the company's membership grew 34% to more than 11.7 million.
Tops In Its Group
The IBD 50 component leads the finance-consumer loans group, according to IBD Stock Checkup. Also, the group places 76th among IBD's 197 industry groups.
Meanwhile, SoFi stock sports a Relative Strength Rating of 96. Its Composite Rating is nearly ideal at 98, showing strong all-around performance. Its Earnings Per Share Rating of 80 meets IBD's recommended threshold. However, a drooping relative strength line mars its technical strength.
Mutual funds own 26% of outstanding shares. More funds have been net buyers of the stock in six out of the past seven quarters. The fintech stock also holds an Accumulation/Distribution Rating of B, showing that funds have been adding the stock to their holdings in the last 13 weeks.
In the IBD mutual fund index, the JP Morgan Large Cap Growth Fund (SEEGX) holds shares of SoFi Technologies.
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