10 Most Undervalued Quality Stocks To Buy According To Analysts

7. SLM Corp. (NASDAQ:SLM)

Average Upside Potential: 16.43%

Forward Price-to-Earnings Ratio: 8.13

Number of Hedge Fund Holders: 24

SLM Corp. (NASDAQ:SLM) provides consumer banking. It was initially a government entity that serviced federal education loans, it then became private and began offering private student loans. Its loan products include undergraduate, graduate, and professional school loans. It also provides financial planning and counseling services to help borrowers manage their student loan debt.

Revenue decreased by 3.74% to $372.17 million in Q2 2024, despite improvements. The company still made $1.11 per share in this period. FAFSA completion rates were down, impacting enrollment. However, new enrollment is normalizing, and most borrowers have exited the extended grace program. Delinquencies are as expected, and loan modification programs have been successful.

At the same time, there were increased loan originations and improved credit quality. A gain of $112 million was realized from a loan sale. Borrower credit quality improved, and more borrowers are now using cosigners. Net charge-offs on private education loans decreased to 2.19%.

On September 25, the company contributed $200,000 to support HBCU Week college fairs, connecting students to resources and scholarships. It also announced a $1 million research endowment to Delaware State University and offers the Completing the Dream Scholarship to help students complete their education at HBCUs.

SLM Corp. (NASDAQ:SLM) has a strong financial position and is committed to returning value to shareholders. It has improved credit quality, effective loss mitigation programs, and a promising future.