#2 - SLM (NASDAQ:SLM)
Like SoFi, SLM Corporation (NASDAQ: SLM) is one of the leaders in the student loan sector. However, SLM stock is down 18% in 2023. But this has been a much more volatile ride for investors as the stock is up 8.8% in the last six months but down 17% in the last three months.
A quick look at the company's earnings reports may explain the volatility. The company beat on earnings in the first quarter of the year. However, it missed earnings expectations in the second quarter, and the $1.10 in earnings per share was lower than the $1.29 the company posted in the same quarter in 2022.
Whereas SoFi is definitely a growth stock, SLM presents investors with a value proposition. It has a forward P/E of just over 5x, which is consistent with many bank stocks. It also has a dividend with an attractive yield of 3.25%.
With that said, this profitable company expects to grow earnings by 3.4% in the next 12 months. And analysts tracked by MarketBeat forecast a 32% upside for SLM stock.
About SLM
SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It is also involved in the provision of retail deposit accounts, including certificates of deposit, money market accounts, and high-yield savings accounts; and interest-bearing omnibus accounts.
Read More - Current Price
- $20.94
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 8 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $22.18 (5.9% Upside)
