Jim Cramer On Sofi: “now I Think It Is Too Cheap To Ignore”

SoFi Technologies, Inc. (NASDAQ:SOFI) is one of the stocks Jim Cramer commented on. Cramer said that the company has a very “reasonable PEG ratio,” as he remarked:

These guys have a long history of practicing UPOD, which is under-promise and over-deliver. The company has beaten revenue and EBITDA expectations in each of the last 18 quarters it’s reported since coming public in 2021, and it’s beaten the earnings estimates for the last nine quarters in a row. That’s not shabby… There’s absolutely nothing hurting this business right now, which makes it kind of crazy that the stock pulled back from $32 to $18 in the past few months. Again, this is not some throwaway financial technology company that can easily be replaced by AI… So I’ve been recommending the stock all the way back since it was $5. And what caught my attention and why I like it so much, frankly, is its CEO. It’s Anthony Noto…

Let’s talk about why I think it’s safe to buy SoFi right here. Right now, after a severe pullback, the stock now represents good value down here at $18 and change. Management says they can earn 60 cents per share in 2026, meaning SoFi’s trading at around 31 times this year’s earnings forecast… That’s not cheap in absolute terms, I know, but you gotta remember that SoFi’s on track to grow earnings at 54% clip this year and to keep growing earnings around 40% through 2028… SoFi’s got a very reasonable PEG ratio… of just 0.6. The lower the better with the PEG ratio. Paying just over 30 times earnings for a company with a 50% plus growth rate is a legitimate steal.

Plus, the stock looks outright cheap based on some of the earnings projections for the out years. Looking at Wall Street’s earnings estimates, SoFi sells for around 23 times next year’s numbers and just under 19 times 2028 numbers. But don’t forget, those estimates again are probably too low. If you believe SoFi’s medium term guidance, and I do because I think CEO Anthony Noto does again have that habit of beating the expectations then it’s actually trading about 17 times its 2028 earnings forecast. That’s really good.

Bottom line: For months now, I’ve been telling you that SoFi stock needed to come in a bit. I was concerned it could drop a lot after its enormous gains of 2024 and 2025. Well, that’s what happened. It pulled back more than 40% from its mid-November highs, coming all the way down to $18 and change. And now I think it is too cheap to ignore. The business is strong, the forecast is beautiful. And when you look at what’s been dragging SoFi stock down, the AI displacement thesis, the stock feels like the proverbial baby that got thrown out with the bathwater. It’s a bank, guys. It has a federal charter. It’s not going to get replaced by Claude or OpenAI. Frankly, if I were one of those two and I wanted to destroy the banking sector, I’d just buy SoFi or at least send out a press release that you plan to buy SoFi. That’s all it takes these days.

SoFi Technologies, Inc. (NASDAQ:SOFI) provides lending, banking, investment, and insurance services through digital platforms. The company offers personal, student, and home loans, cash management, investment tools, credit cards, and financial wellness products.

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