SoFi Technologies (NASDAQ: SOFI) has seen a remarkable rise in recent years, with a $1,000 investment three years ago now worth around $3,824, boasting an average annual gain of 56%. The company offers a range of financial services, targeting younger customers with a focus on personal finance and banking.

With nearly 12 million members, SoFi Technologies offers a “SoFi Plus Premium” membership program with various benefits, costing $10 per month. The company recently reported impressive second-quarter results, with a 34% year-over-year growth in membership and a 44% increase in adjusted net revenue to $858 million.

Despite its growth potential and solid execution of strategies, SoFi Technologies’ shares are not cheap, with a recent price-to-sales ratio of 9 and a forward-looking price-to-earnings ratio of 69. Consider adding the stock to your watchlist or buying incrementally over time to manage potential risk.

While the future looks promising for SoFi Technologies, it’s essential to conduct thorough research before investing. The company’s solid performance and growth in fee-based revenue indicate a positive outlook, but its valuation metrics suggest caution.

Take note that SoFi Technologies was not among the top 10 stocks identified by the Motley Fool Stock Advisor team for potential high returns. However, the company’s growth potential and user-friendly services could still make it an attractive investment option for those willing to take on some risk.

Read more at Yahoo Finance: If You’d Invested $1,000 in SoFi Technologies (SOFI) Stock 3 Years Ago, Here’s How Much You’d Have Today. (Spoiler: Wow.)