Here's Why You Should Retain SOFI Stock in Your Portfolio Now

SoFi Technologies SOFI stock has had an impressive run over the past year. Shares of the company have surged 62.7% against the 9.6% dip of the industry it belongs to and the 27.6% rise of the Zacks S&P 500 composite.

1-Year Share Price Performance

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The Zacks Consensus Estimate for revenues for 2026 is expected to improve 27.2% year over year, and the same for 2027 is anticipated to gain 21.9.%. The consensus mark for EPS is anticipated to increase 53.9% in 2026 and 33% in 2027.

Factors That Augur Well for SOFI’s Future

Continuous digitalization across all industries, mainly in the financial sector, presents an opportune moment for SoFi Technologies. As a company focusing on online banking and offering a comprehensive suite of products and services, SOFI is well-positioned to benefit from this trend.

The demand for online financial platforms is expected to climb and SOFI's technology platform, Galileo, integral to its banking business, is being adopted by other financial firms, positioning the company to become a major player. 

SOFI's student loan-refinance business is in the limelight due to less generous loan-forgiveness policies under the Trump administration. Stricter forgiveness criteria may compel borrowers to seek refinancing options to lower repayment costs. SoFi Technologies is expected to expand its customer base on the back of lower repayment costs.

The Federal Reserve's rate cuts will significantly boost SOFI by alleviating pressure on its lending business. While the current rates are unchanged at 3.5-3.75%, declared in January 2026, a lower interest rate in the future will reduce borrowing costs, encouraging more customers to take loans and refinance existing ones. This improves SoFi’s loan origination volumes and enhances its overall profitability.

Risks Faced by SoFi Technologies

SOFI’s high current liability account affects its liquidity position. As of Dec 31, 2025, the company reported a current ratio of 0.78 compared with the industry average of 1.2. A ratio below 1 suggests potential challenges in meeting short-term financial obligations. This imbalance raises concerns about the company’s ability to manage its liabilities efficiently, affecting operational flexibility and investor confidence.

SOFI has not declared and does not have a plan to pay out cash dividends, making share price appreciation the sole avenue for returns, which is not a guaranteed phenomenon, given the 33% decline in share price in the past six months. It makes the stock unappealing to the income-seeking investors.

Zacks Rank & Stocks to Consider

SoFi Technologies carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader Zacks Finance sector are Bank of Montreal BMO and Bank of Nova Scotia BNS.

Bank of Montreal carries a Zacks Rank of 2 (Buy) at present. It has a long-term (next five years) earnings growth expectation of 14.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BMO delivered a trailing four-quarter earnings surprise of 6.5%, on average.

Bank of Nova Scotia has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 13.7%.

BNS delivered a trailing four-quarter earnings surprise of 2.2%, on average.

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research