SoFi Technologies (SOFI:NSD) is gearing up to unveil its second-quarter results on July 31 before the market opens. The company’s performance in the to-be-reported quarter is expected to reflect strong momentum in its personal loans and other financial offerings, which have been driving growth. Additionally, the company’s innovative financial services have contributed to an expanding customer base, further bolstering expectations for revenue growth. SOFI stock forecast follows a bullish trend.
Analysts’ Expectations for Q2:
Wall Street analysts anticipate SoFi to report a loss of $0.07 per share in Q2, which would be an improvement compared to the loss of $0.12 in the same quarter last year. Despite the expected loss, they are optimistic about SOFI stock forecast in terms of revenue growth, with expectations set at $475.87 million, representing a year-over-year increase of 22.2%.
SOFI Stock Forecast-Analyst’s Coverage and Concerns:
Ahead of the Q2 earnings release, Vincent Caintic, an analyst from Stephens, initiated coverage on SOFI stock with a Hold rating and a price target of $7. While he is not overly concerned about the company’s credit profile, he remains focused on the significantly higher expense ratio as a key factor influencing profitability.
Technical Indicators Point to a Strong Buy:
Technical indicators are signaling a Strong Buy for SoFi ahead of its Q2 results. The stock’s 50-Day EMA (exponential moving average) stands at 8.27, while its current price is $9.55, indicating a Buy trend. Furthermore, the moving averages convergence divergence (MACD) also points toward a bullish trend.
Analysts’ Perspective on SoFi Stock Forecast:
Wall Street analysts currently hold a Hold consensus rating for SoFi stock. Among them, there are seven Buy recommendations, eight Holds, and three Sells. The average price target for SOFI stock is $8.47, implying a potential downside of about 11.3%. Despite this, SOFI stock has already experienced substantial gains, surging over 112% in the year 2023.
Insights from Options Trading Activity:
Options traders are expecting a significant move of 16.23% following SoFi’s earnings announcement. This anticipated volatility is higher than the fall observed in the previous quarter’s earnings-related activity, which stood at 12.2%.
Conclusion:
In conclusion, as SoFi Technologies prepares to release its Q2 earnings report, analysts are optimistic about revenue growth driven by the company’s strong market performance in personal loans and other financial services.
However, they also anticipate a widening of losses compared to the previous year. The stock’s technical indicators indicate a Strong Buy, while Wall Street’s consensus rating remains at a Hold, with a cautious eye on profitability concerns.
Investors should keep an eye on options activity, which suggests the potential for significant movement following the earnings release.
