## SoFi Technologies (SOFI): A Momentum Stock Worth Watching?
In the dynamic world of investing, momentum plays a key role. The idea is simple: follow the trend of a stock’s price, whether it’s rising or falling. Momentum investors believe that once a stock establishes a direction, it’s likely to continue on that path. This approach can lead to timely and potentially profitable trades, but identifying genuine momentum can be tricky.
That’s where the
Zacks Momentum Style Score
comes in, providing a valuable tool to help investors navigate the complexities of momentum investing. Today, we’re focusing onSoFi Technologies, Inc. (SOFI)
, a company with a Zacks Momentum Style Score of B. This score, coupled with its Zacks Rank of #2 (Buy), suggests that SOFI might be a compelling momentum pick for investors.### Uncovering SoFi’s Momentum
To understand SOFI’s momentum, let’s delve into its recent price performance. Over the past week, SOFI shares have climbed 0.45%, outperforming the Zacks Financial – Miscellaneous Services industry, which saw a decline of 0.52%. Looking at a longer timeframe, the monthly price change of 37.49% for SOFI significantly outpaces the industry’s 6.5% growth.
The momentum story doesn’t end there. SOFI has experienced a remarkable 78.67% increase over the past quarter and a 61.56% gain in the last year, outperforming the S&P 500’s respective returns of 13.52% and 37.4%.
Another important indicator is trading volume. An increase in volume alongside a rising stock price is often a bullish sign, while a declining stock with high volume suggests bearish sentiment. SOFI’s average 20-day trading volume is currently 63,361,096 shares, providing insights into market activity surrounding the stock.
### Earnings Estimates: A Key Momentum Driver
Beyond price movements, the Zacks Momentum Style Score also considers trends in earnings estimate revisions. This factor is crucial in assessing a company’s future prospects. For SOFI, the news is positive: over the past two months, 7 earnings estimates have been revised upwards for the full year, with none going lower. These revisions have led to an increase in SOFI’s consensus estimate from $0.09 to $0.12 in the past 60 days. Looking at the next fiscal year, 7 estimates have been revised upwards, further bolstering the positive outlook.
### Conclusion: SOFI’s Momentum Makes it a Stock to Watch
SoFi Technologies, Inc. (SOFI) boasts a Zacks Momentum Style Score of B, which, combined with its Zacks Rank of #2 (Buy), points towards a promising momentum story. Its recent price performance, outpacing both its industry and the broader market, coupled with positive earnings estimate revisions, suggests that SOFI might be a compelling investment for investors seeking near-term gains. Keep SOFI on your radar as you explore potential momentum picks in the financial services sector.
