SoFi Technologies (SOFI) Upgraded to Buy: Here's Why

Core Viewpoint - SoFi Technologies, Inc. (SOFI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates, which significantly impacts stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates are a powerful indicator of near-term stock performance [4][6]. - Rising earnings estimates for SoFi Technologies imply an improvement in the company's underlying business, which could lead to increased stock prices as investors respond positively [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of performance, where Zacks Rank 1 stocks have generated an average annual return of +25% since 1988 [7][9]. - SoFi Technologies' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, SoFi Technologies is expected to earn $0.27 per share, which remains unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.2% over the past three months [8].