Policy Changes Spark Market Optimism For SoFi Technologies Stock
Trump’s tax bill has already cleared the Senate and was narrowly approved by the Republican-controlled House of Representatives, as per Reuters. This would lower the cap on how much graduate students can borrow from the federal government, creating a funding gap for higher education, according to the TipRanks report. That gap in funding could create an opening for private loan providers, and SoFi, long known for its student loan and refinancing business, is well-positioned to benefit, as per the report.
The market sees an opportunity for growth for the company, as a drop in federal support could drive more borrowers to its platform, and that’s what investors are betting on, according to the TipRanks report. SoFi stock has now increased more than 100% in the past three months, as reported by TipRanks.
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Earnings Buzz Builds Ahead of July 29 Report
The firm’s stock rise comes as SoFi is going to post its second-quarter results on July 29, and investor expectations are already high, as reported by TipRanks. The market is expecting the momentum to continue as the company reported strong first-quarter numbers, with revenue increased by 20% and earnings rising 200% year-over-year, according to the report.
As per the TipRanks report, Wall Street analysts projected that the company will report earnings of $0.06 per share, increasing 500% from the year-ago quarter. But, revenues are projected to decline by about 7% from the year-ago quarter to $801.8 million, as per the data from the TipRanks Forecast page.With student lending now in focus because of Trump’s tax bill, SoFi’s performance in that segment is expected to draw even closer attention this quarter, and a solid report might give the firm’s stock another lift as “policy tailwinds and strong business fundamentals begin to align,” wrote TipRanks in its report.ALSO READ: State-by-state breakdown: Trump’s approval ratings just released — these states are turning on him fast
Analysts Offer Cautious Optimism
As per TipRanks’ analysis, Wall Street has indicated a “Moderate Buy” consensus rating on SoFi Technologies stock, which is based on seven Buys, five Holds, and two Sell recommendations, as per the report. The average SOFI stock price target of $14.85 would mean a 22.82% downside risk from current levels, as reported by TipRanks in its article.
FAQs
What’s in Trump’s tax bill that affects student loans?
The law lowers the cap on federal graduate student loans, creating a gap that private lenders may step in to fill.
How has SoFi stock performed lately?
The stock has surged more than 100% over the past three months, driven by strong earnings and favorable policy developments.
