Gobs of good stocks can turn $1,000 per month into $1 million or more. It just takes disciplined investing, a fair amount of time, and, of course, a good stock -- or stocks. Here's one such stock from the financial sector: SoFi Technologies (NASDAQ: SOFI). It has been averaging annual gains of 43% over the past three years, though it's down 25% year to date. That presents an attractive buying opportunity. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best st ...

SoFi Technologies - SoFi Technologies continues to show growth potential despite recent stock price declines, with a focus on membership growth leading to revenue and earnings growth [1][2] - For the year ending December 31, 2025, SoFi reported a 37% year-over-year revenue growth and a 111% increase in adjusted net income, with management projecting 30% revenue growth and 54% EPS growth for the next year [4] - Analysts expect SoFi's EPS to grow by 31% in 2027, 17.5% in 2028, and nearly 14% in 2029, indicating a strong long-term growth outlook [6] Citigroup - Citigroup is identified as an undervalued bank stock with growth potential, benefiting from a turnaround strategy implemented by CEO Jane Fraser, which includes downsizing and aggressive share repurchases [8][9] - In 2024, Citigroup reported 3% revenue growth and 38% earnings growth, with further growth projected at 6.5% revenue and 26.7% earnings in 2025 [11] - Analysts anticipate Citigroup's EPS to reach $10.23 in 2026 and $12.03 in 2027, with the stock trading at a forward P/E of 10.8, suggesting significant upside potential if rerated [12][13]

Core Viewpoint - SoFi Technologies, Inc. (NASDAQ:SOFI) shares are currently consolidating after a prolonged downtrend, approaching a critical price level that may provide support [1][2]. Price Action and Market Dynamics - In January 2025, SoFi shares were in an uptrend, with demand outpacing supply, leading to increased prices as buyers competed to attract sellers [2]. - The stock peaked at $18.25, where selling pressure increased, halting the upward movement as supply met demand [3]. - After a reversal and subsequent decline, some sellers felt satisfied with their decision, but a breakout in June led to a price increase, causing regret among those who sold [3]. Potential Support Levels - Many former sellers expressed intentions to repurchase shares but set a price ceiling at their previous selling price, indicating that if SoFi reaches $18.25 again, there could be significant buy orders from regretful sellers [4]. - This accumulation of buy orders at the $18.25 level could create a support floor for the stock price [4]. Buyer Behavior and Market Reactions - If the support level holds, buyers who contributed to it may become anxious, fearing that sellers will seek higher bids elsewhere [5]. - This anxiety could lead to increased bid prices among buyers, potentially igniting a bidding war that drives SoFi's stock price higher [5].

Core Insights - The article highlights three stocks trading under $20 per share: SoFi Technologies, Grab Holdings, and Ford Motor Company, all of which have strong business fundamentals and potential for growth in 2026 and beyond [1] Group 1: Ford Motor Company (NYSE:F) - Ford's stock is currently priced at $13.72, reflecting a 54% increase over the past year but is 4% below its 52-week high of $14.34. The analyst target is $13.97 [1] - The company reported $187.3 billion in revenue for 2025, marking its fifth consecutive year of growth, despite a net loss of $8.2 billion due to significant impairments [1] - Ford Pro, the commercial segment, generated $6.8 billion in EBIT with a 10.3% margin, indicating strong performance in commercial vehicle sales [1] - For 2026, Ford anticipates adjusted EBIT of $8 billion to $10 billion and adjusted free cash flow of $5 billion to $6 billion, targeting an 8% adjusted EBIT margin by 2029 [1] Group 2: Grab Holdings (NASDAQ:GRAB) - Grab's stock trades at $4.36, down 12% year-to-date, but analysts project a 53% upside to $6.65, with 27 out of 28 analysts rating it as Buy or Strong Buy [1] - The company achieved its first full year of profitability in 2025, with a net income of $200 million compared to a loss of $158 million in 2024, and revenue increased by 20% to $3.37 billion [1] - Grab's financial services segment saw significant growth, with its loan portfolio more than doubling to $1.18 billion and customer deposits reaching $1.6 billion [1] - For 2026, Grab expects revenue between $4.04 billion and $4.10 billion, representing a 20% to 22% increase, and adjusted EBITDA is projected to reach $700 million to $720 million [1] Group 3: SoFi Technologies (NASDAQ:SOFI) - SoFi's stock is currently priced at $19.22, down 27% year-to-date, with analysts predicting a target price of $26.50, indicating a potential 38% gain [1] - The company reported over $1 billion in quarterly revenue for the first time, achieving $1.025 billion in Q4 2025, a 40% year-over-year increase, and net income of $173.5 million [1] - For 2026, SoFi projects revenue of $4.655 billion, a 30% increase, with adjusted EBITDA expected to reach $1.6 billion and adjusted EPS projected at $0.60 [1] - The company has a strong cash position of $4.93 billion, up 94% year-over-year, and shareholders' equity reached $10.5 billion, up 61% [1]

Two of the most important qualities of a winning investment are growth and market share gains. This is one of the key philosophies of investing legend Peter Lynch. In the consumer finance space, the last decade has been marked by disruption. The next should prove the same, if not more so, as mobile and technology-enhanced financial tools proliferate worldwide. Two stocks taking advantage of this trend are Nu Holdings (NYSE: NU) and SoFi Technologies (NASDAQ: SOFI). Here's why these are my two top financi ...

Group 1: Investment Opportunities - Investing does not require millions; starting with $500 can allow investment in financial stocks like Nu Holdings and SoFi Technologies, which are experiencing growth despite being in the less-publicized banking sector [1] - SoFi's revenue has increased by 2,900% over the past five years, reaching $4.77 billion in the last 12 months, and the company is now profitable with over $500 million in pretax income in 2025 [4] - Nubank's revenue rose 42% year over year to $4.2 billion, with net income increasing to $783 million, showcasing its ability to grow rapidly while remaining profitable [8] Group 2: Company Profiles - SoFi began as a student loan lender in 2011 and has evolved into a comprehensive online banking application, attracting 13.7 million customers by the end of 2025, a 35% year-over-year growth [3] - Nubank, part of Nu Holdings, operates in Brazil, Mexico, and Colombia, offering services through a mobile app and avoiding traditional banking costs, which has led to a customer base of 106 million as of Q3 2025 [6][7] - Both SoFi and Nubank focus on providing a better value proposition through technology and customer-centric services, positioning them for continued revenue growth [6][7]

Group 1: Company Overview - SoFi is rapidly gaining market share as a top online bank, with a current market cap of $25 billion, which is significantly smaller than Bank of America's $400 billion market cap [1][2][5] - The company has 13.7 million customers, having added 1 million new members in Q4, indicating growing mainstream acceptance of online banking [9] Group 2: Financial Performance - SoFi delivered 40% year-over-year revenue growth in the fourth quarter and achieved its ninth consecutive quarter of profitability, with adjusted net income almost tripling year over year [7] - The company saw strong demand across its product categories, with bank accounts, investment accounts, and credit card openings increasing by 33%, 28%, and 56% year over year, respectively [11] Group 3: Competitive Advantage - SoFi's online banking solutions allow it to offer higher interest rates on deposits and more competitive products compared to traditional banks, which have higher overhead costs due to physical branches [5] - The fintech company is also tapping into cryptocurrencies, closing the year with 63,441 crypto products, which could provide a long-term growth opportunity as Bitcoin regains momentum [10] Group 4: Market Position - SoFi's revenue and net income are growing at faster rates than those of Bank of America and other traditional banks, suggesting it could maintain an attractive price-to-earnings (P/E) ratio over time [8]

Core Viewpoint - SoFi Technologies faced significant challenges in January 2026, primarily due to a capital raise that led to stock dilution, impacting shareholder value and stock performance [6][11]. Company Overview - SoFi Technologies was established in 2011, initially focusing on student loan refinancing and later expanding into various financial products [1]. - The company went public in 2021, still largely recognized as a student loan provider [1]. Financial Challenges - The suspension of federal student loan payments and interest accrual from March 2020 to September 2023 resulted in SoFi losing an estimated $300 million to $400 million in revenue and $150 million to $200 million in profit during that period [2]. - SoFi's stock has experienced volatility, spending most of its time below its initial public offering price of $22.65 [3]. Recent Developments - In January 2026, SoFi's stock dropped by 17% following the announcement of a $1.5 billion stock offering priced at $27.50 per share, which diluted existing shares and created selling pressure [6][7]. - The current stock price is $19.51, with a market capitalization of $25 billion [8][9]. Future Outlook - For Q1 2026, SoFi expects a net income of $160 million, representing a 125% increase from Q1 2025, and a projected net income of $825 million for the entire year, a 72% increase from 2025 [10]. - The current price/earnings-to-growth (PEG) ratio is 1.51, indicating that SoFi is technically overvalued relative to its expected earnings growth, although this ratio is more modest compared to previous quarters [10][12]. - Selling pressure may persist in the near term, but if SoFi effectively utilizes its new capital and meets or exceeds expectations, the outlook for 2026 could improve [11].

Financial Performance and Risks - The company has a history of net losses prior to Q4 2023 and may incur future net losses, with significant revenue generation required to sustain operations [196]. - The company faces risks related to macroeconomic conditions, including fluctuating inflation and interest rates, which could impact its financial performance [185]. - Market volatility and adverse financial conditions may increase market risk, affecting liquidity, competitive position, and customer confidence [205]. - The company may experience fluctuations in quarterly operating results due to various factors, including changes in fair values of instruments, competition, and economic conditions [215]. - Economic downturns may increase member default rates and decrease demand for the company's products, adversely impacting financial performance and liquidity [285]. - The company’s Lending and Financial Services segments may be particularly affected by worsening economic conditions, leading to increased loan defaults and charge-offs [286]. - The company is exposed to financial risks that may not be fully mitigated by hedging activities, particularly as interest rate risk increases with the growth of the home loans business [253]. - A sustained decline in deposits or unfavorable shifts in deposit composition could reduce access to low-cost funding and negatively affect the company's financial condition [289]. - High member default rates could reduce the attractiveness of the company's loans to funding sources, potentially increasing financing costs or limiting access to capital [317]. Business Expansion and Acquisitions - In 2023, the company acquired Wyndham, a fintech mortgage lender, expanding its home loan business [192]. - The company has expanded its international operations, including the acquisition of Technisys to further its presence in Latin America [192]. - The Technisys acquisition, closed in March 2022, aims to develop a vertically integrated banking technology stack, with anticipated benefits dependent on realizing cost savings and additional revenue opportunities [268]. - The company has expanded operations internationally, including acquisitions in Hong Kong, Canada, Mexico, and Colombia, and introduced self-serve global remittance services in over thirty countries [270]. Product and Service Development - The company launched SoFi Crypto in the U.S. and SoFi Securities (Hong Kong) Limited launched crypto trading in Hong Kong, enhancing its digital asset offerings [192]. - The company plans to continue investing in new products and services, which may lead to operating at a loss in the short term [197]. - The company is focused on maintaining a competitive annual percentage yield on deposits to retain customer balances [185]. - The company launched SoFi Crypto in the U.S. and digital asset trading in Hong Kong in 2025, allowing members to buy, sell, and hold digital assets, which subjects the company to additional regulations and compliance costs [273]. - The company continues to face regulatory scrutiny and potential legal liabilities due to fraudulent activities, which could adversely impact business operations and financial results [264]. Competition and Market Position - The company faces intense competition with no substantial barriers to entry in its markets, which could adversely affect its competitive positioning and operating results [200]. - The company competes with various financial institutions and fintech companies, which may offer more competitive pricing and a broader range of products [202]. - Key factors for future success include member retention, acquisition costs, and increasing the lifetime value of each member [201]. Regulatory and Compliance Challenges - The company must navigate evolving ESG standards and regulations, which could require significant capital resources for compliance [213]. - Changes in laws and regulations, particularly related to financial regulation and international trade, may adversely impact the company's operations and earnings [242]. - The company faces significant regulatory compliance risks associated with global remittance services, which could lead to investigations, penalties, and operational restrictions if not managed properly [280]. - Increased scrutiny from the CFPB under the current administration may raise compliance costs and operational challenges for the company [357]. - The company holds multiple state lending licenses, and any regulatory violations could impair loan servicing and result in financial penalties [358]. Cybersecurity and Fraud Risks - The company has faced challenges related to cybersecurity, which could harm its brand and financial condition [190]. - Cybersecurity risks, including potential data breaches, could result in significant costs and adversely affect the company's financial condition and reputation [229]. - Increased fraudulent activity poses reputational damage and financial exposure, particularly affecting newer products like SoFi Money, SoFi Credit Card, and SoFi Crypto [262]. - Fraud prevention tools depend on reliable data sources, and failures in these checks could lead to significant undetected fraud, adversely affecting revenue and profitability [295]. Funding and Capital Management - The company relies on various funding sources, including SoFi Bank deposits, warehouse funding, and securitizations, to finance operations and capital expenditures [311]. - A slowdown in deposit growth may force the company to seek higher-cost funding, negatively impacting its ability to finance additional loans and develop new products [313]. - The company may require additional capital to support growth and respond to unforeseen challenges, which could be difficult to obtain on favorable terms [325]. - The company is subject to minimum capital requirements for SoFi Bank, which may necessitate providing capital support even when resources are limited [327]. Economic and Market Conditions - The Federal Reserve increased interest rates throughout 2022 and 2023 before lowering them in 2024 and 2025, creating uncertainty regarding future interest rate movements [240]. - Significant downturns in the securities markets could decrease demand for the company's products and services, potentially leading to increased default rates on loans [239]. - The company has experienced lower demand for home loans in an elevated interest rate environment, prompting a focus on personal loan originations, which carry higher risk [246]. - An inflationary environment has increased operating costs, including labor and technology, which could adversely affect margins and profitability [247]. - Fluctuating interest rates may negatively impact the demand for the company's checking and savings products, affecting access to deposits as a funding source [248]. Operational and Management Challenges - The company has experienced rapid growth, particularly in its Financial Services and Technology Platform segments, leading to increased operational demands and expenses [199]. - Future growth will depend on the company's ability to maintain an effective operating platform and management system, optimize deposit balances, and demonstrate evolving risk management practices to regulators [199]. - The company relies on accurate credit and pricing decisions to avoid material harm to its financial results, emphasizing the importance of data integrity in assessing creditworthiness and loss rates [292]. - Errors in underwriting models could lead to higher delinquencies and losses, negatively impacting debt warehouse financing terms and future securitization transactions [293].

Core Insights - SoFi Technologies and Ally Financial reported contrasting fourth-quarter earnings, with SoFi beating estimates but experiencing a significant drop in share price, while Ally missed estimates but saw a smaller decline in its stock price [2][7] SoFi Technologies - SoFi achieved $1.03 billion in revenue and $0.13 EPS, exceeding expectations [3][5] - The company added 1 million members in Q4, bringing the total to 13.7 million [3] - Home loan originations doubled, and personal loans grew by 43% [3] - Fee-based revenue reached $443 million, a 53% increase, driven by crypto trading and the launch of SoFiUSD stablecoin [3] - CEO Anthony Noto projected $4.655 billion in revenue for 2026, indicating a 30% growth rate and $0.60 EPS [3][5] - SoFi's strategy focuses on becoming a comprehensive financial platform, with risks tied to execution and potential slowdowns in crypto adoption or loan demand [5] Ally Financial - Ally reported $2.12 billion in revenue, missing the $2.19 billion estimate, and EPS of $0.95, falling short of the $1.05 consensus [4][5] - Net income surged 178% year-over-year to $300 million, with a record $43.7 billion in consumer auto loans originated for the year [4] - The company resumed its $2 billion share buyback program and maintained a quarterly dividend of $0.30, resulting in a 2.9% dividend yield [4][6] - Ally's strategy is centered on the stabilization of auto lending as interest rates normalize, with a cautious outlook and no guidance for 2026 [6]