SoFi Technologies (NASDAQ: SOFI)
SoFi stock could triple by the end of 2027 thanks to a few key reasons. The primary driver of this possible outcome comes down to its incredible growth across both its earnings and base business. In fact, SoFi has seen a 35% year over year increase in user base growth last quarter and analysts are expecting it to continue increasing by 22% this time next year.
Another reason SoFi stock could triple is its valuation. A PE of 38 is high, but given the expected earnings growth that gives it a PEG ratio of just 0.78 right now. With competitors like Robinhood having PEG ratio’s in the 2.5 range, this means SoFi’s valuation is at least 3X lower than that of its peers with similar growth trajectories. Any catalyst large enough could certainly see the valuation rise high enough to make up the tripling of the share price alone, and you’d still have to bake in the earnings growth on top of that.
SoFi stock could reasonably triple by the end of 2027 if it has some sort of positive news event that could get that valuation multiple back up to where its peers are at currently. We have Sofi as a medium risk, high reward stock and have it rated a Strong Buy with a +27% one year price forecast. The current consensus rating is a Buy with a +42% price prediction.
Topics: SOFI stock price prediction, SoFi stock analysis
