From Yahoo Finance: 2025-04-28 07:05:00

Shares of SoFi Technologies (NASDAQ: SOFI) have surged 70% in the past year but are currently trading 28% below their 52-week high. The digital banking powerhouse aims to disrupt the industry with strong growth potential and competitive strengths.

SoFi CEO Anthony Noto aims to make the company a top 10 financial institution, highlighting its growth runway despite being a newcomer in the industry. With a 10-fold increase in customer base, SoFi’s digital platform resonates strongly with consumers.

Wall Street analysts project SoFi’s revenue to grow at a compound annual rate of 18.5% over the next three years. The company’s ability to cross-sell products and attract a younger demographic adds to its potential for growth and success in a mature industry.

Operating without physical branches, SoFi focuses on technology and product development, aiming for operating leverage as revenue grows. The company recorded its first year of GAAP profit in 2024 and forecasts continued earnings growth in the future.

SoFi’s stock currently trades at $12.89, with an estimated three-year forward P/E of 15.5 based on earnings expectations for 2027. With a positive outlook and growth potential, investing in SoFi could present a reasonable opportunity in the fintech sector.

Read more: SoFi Technologies Could Be a No-Brainer Buy in April