If you’re seeking stocks that seem like bargains because they have seemingly low prices, such as shares trading for less than $20 apiece, understand that a $20-per-share stock can be wildly overvalued and likely to fall, while a $215-per-share stock — such as Nvidia, as of June 3 — can be undervalued and likely to rise.
Consider SoFi Technologies (SOFI 6.39%) for your portfolio. It was trading for $16.68 per share as of June 3, and it also seems attractively valued.
Image source: The Motley Fool.
SoFi Technologies is a financial services company, and one that aims to be a one-stop digital shop for all things financial for its customers. The company brags: “13.7 million members trust SoFi to borrow, save, spend, invest, and protect their money and buy, sell, and hold their crypto — all in one app — and get access to financial planners, exclusive experiences, and a thriving community. Fintechs, financial institutions, and brands use SoFi’s technology platform Galileo to build and manage innovative financial solutions across 128 million global accounts.”
Today’s Change
(-6.39%) $-1.09
Current Price
$16.05
Key Data Points
Market Cap
$21B
Day’s Range
$15.68 – $16.98
52wk Range
$13.96 – $32.73
Volume
2M
Avg Vol
67.2M
Gross Margin
61.74%
In its first quarter, SoFi Technologies posted net revenue up 41% year over year and 1.1 million new members. It relaunched its SoFi Plus suite of offerings with a $10-a-month subscription model, which should drive valuable recurring revenue.
SoFi Technologies’ shares have averaged annual gains of 36% over the past three years and have gained nearly 30% over the past year. They’re down 32% year to date, partly because of a short-seller report), putting them back in attractive territory, with a recent forward-looking price-to-earnings (P/E) ratio of 27.
SoFi Technologies, like lots of great stocks, can make you a millionaire if you have enough time and invest meaningful sums in it. Imagine, for example, that you invest $1,000 per month in it and it averages 12% annual returns over 20 years. That would get you to just about $1 million. (Of course, for best results, you should spread your money across lots of promising stocks, so as not to have too many eggs in one basket.)