SoFi (SOFI) stock has surged over 270% in the past year due to strong financial performance, growth, and shift to fee-based services. Despite tempting profits, experts believe the rally is not over yet, especially with favorable interest rates boosting lending divisions that have already shown resilience.

In Q2, SoFi saw a 35% increase in student lending to almost $1 billion. With a refinancing solution and $280 billion student loan market, the company is poised for growth. Home loans also grew over 90% year-over-year, with home equity loans driving much of the surge.

SoFi is transitioning into a diversified financial services company, focusing on fee-based services to reduce credit risk and stabilize revenue. Fee-based revenue jumped 72% to $378 million in the most recent quarter, driven by various sources including the Loan Platform Business (LPB).

LPB is a growth catalyst for SoFi, generating scalable revenue through customized loans for third parties. The company’s Tech Platform business is also expanding, broadening its client base and revenue opportunities. Analysts may suggest holding, but SoFi’s fundamentals indicate continued growth potential with favorable interest rates and strategic shifts.

Read more at Yahoo Finance: SoFi Stock Is Exploding Higher, But Don’t Cash Out Yet