We recently published a list of the 10 Stocks to Buy and Sell Before the Third Quarter 2024 According to Jim Cramer. Since SoFi Technologies Inc (NASDAQ:SOFI) ranks 8th on the list, it deserves a deeper look.
Jim Cramer in a latest program discussed the changing consumer trends in the US, wondering whether the consumer is just “fed up” of paying high prices and becoming “frugal.” Cramer said this “frugal thesis” is not “obvious” but he has recognized this latest trend based on some new developments. Cramer named a few consumer companies that are benefitting from the changing consumer behavior because of their discounted price offerings. Cramer rejected the notion that dollar stores are cheap. He said these stores raise prices “aggressively” and calling them dollar stores has become a “misnomer.” The CNBC host said the consumers “want prices lower” and that’s why dollar store companies are getting crushed in the new environment.
Jim Cramer also said the “renting society” is winning the “owning society,” pointing to a new trend where consumers are renting boats instead of buying them to enjoy the experience without spending a fortune.
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked some stocks he’s recommending investors to buy or sell. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
SoFi Technologies Inc (NASDAQ:SOFI)
Number of Hedge Fund Investors: 31
Jim Cramer recently said in a program that he’d “wait” on Sofi because he didn’t “like” SoFi Technologies Inc (NASDAQ:SOFI) latest quarter.
“Right now, that last quarter was not great. I just didn’t like it. And I’m going to have to wait.”
Oppenheimer recently published a list of buy and sell stocks in different categories and SoFi Technologies Inc (NASDAQ:SOFI) made it to the list as a Sell under Financials category. The stock is down 32% so far this year. However, SoFi Technologies Inc (NASDAQ:SOFI) bulls believe the stock is a buy on the dip. During the first quarter SoFi Technologies Inc (NASDAQ:SOFI) revenue jumped 26% year over year while earnings expanded from $0.05 to $0.02 on a YoY basis. SoFi Technologies Inc (NASDAQ:SOFI) management recently said it’s working on new products and services that could drive SOFI revenue growth at a 25% CAGR over the next three years. Wall Street expects the online personal finance platform SoFi Technologies Inc (NASDAQ:SOFI) earnings to grow 125.00% this year and 166.70% next year. Average analyst price target on the stock is $8.61, which presents a 30% upside to the current price. SoFi Technologies Inc (NASDAQ:SOFI) expects to achieve GAAP Net Income of $165-175 million and Diluted EPS of $0.08-$0.09 during the full-year 2024.
Patient Capital Opportunity Equity Strategy stated the following regarding SoFi Technologies, Inc. (NASDAQ:SOFI) in its first quarter 2024 investor letter:
“SoFi Technologies, Inc. (NASDAQ:SOFI) fell in the first quarter despite delivering strong 4Q results and 2024 guidance supported by their non-lending businesses. The company continues to gain share in the digital lending and neo-banking space, consistently growing deposits at $2B a quarter. What differentiates the company is their focus on prime and super-prime customers (average FICO 749). Sofi is early in its life cycle, currently being a small player in a very large total addressable market (TAM). With their strong management team, we believe the company will continue to deliver on their guidance of strong growth and expanding margins.”
Overall, SoFi Technologies Inc (NASDAQ:SOFI) ranks 8th on Insider Monkey’s list titled 10 Stocks to Buy and Sell Before the Third Quarter 2024 According to Jim Cramer. While we acknowledge the potential of SoFi Technologies Inc (NASDAQ:SOFI), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SoFi Technologies Inc (NASDAQ:SOFI) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
