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SoFi Technologies, Inc. (SOFI) has seen a significant rebound, currently trading at over 41X forward earnings, indicating a renewed investor confidence in its digital-first model. The stock has gained 21% over the past three months, outperforming its industry’s 10% rally. However, some investors are questioning whether the current valuation reflects its true potential.
The Zacks Consensus Estimate for SoFi’s earnings has been rising over the last 60 days. Despite its compelling long-term narrative, the company may face challenges due to ongoing geopolitical tensions and potential economic slowdowns through 2026, which could impact earnings more than expected.
In contrast, other fintechs like Block (XYZ), trading at a forward P/E of 2X, and Upstart (UPST), with a forward P/E of 33X, could present more attractive investment opportunities as SoFi’s valuation stabilizes.
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