Without a doubt, SoFi Technologies (SOFI 2.82%) has been a volatile stock. The company's stock chart in 2021 looks like a wild roller-coaster ride, and 2022 was a long slope downward from prices in the low $20s to prices in the mid-single-digit range. However, after about 2 1/2 years of trading in that single-digit range, shares have soared by 90% just in the past 12 months to more than $13.

Investors who take a closer at this fintech company now will likely come away impressed. But if you buy shares today, could SoFi set you up for life? 

SoFi NASDAQ Listing image of day that SoFi was listed.

Image source: SoFi Technologies.

Rising in the financial services industry

It has been remarkable to watch SoFi's evolution from its launch in 2011 as a business that specialized in offering more affordable student loans to its current form as a comprehensive online bank. Now, SoFi can help its customers with an array of financial needs, from checking and savings accounts to stock investing, insurance, and loans.

Its growth has been exceptional. During the five-year period that ended in 2024, SoFi's customer base expanded 10-fold. And in the first three months of this year, it added 800,000 net new customers. This propelled a 20% jump in revenue year over year. Its ability to cross-sell additional products to existing customers as their financial needs evolve should drive durable growth over the long term.

Based on its impressive trajectory, the business is doing a fantastic job at filling a market need. That should make investors bullish because it highlights SoFi's ability to take advantage of the weaknesses of banking industry incumbents by offering a tech-forward banking platform that provides a superior user experience.

There's reason to be optimistic about SoFi's future, at least if you believe what its leadership team says. Chief Executive Officer Anthony Noto has said publicly that he wants SoFi to become a top 10 financial institution one day. It's not exactly clear what metric he's focused on -- asset base, revenue, market cap, or something else -- but it's obvious that his goal is to aim high.

Focus on earnings growth

SoFi stock is still far below the all-time high it reached in February 2021. The stock is currently 48% below that peak. However, its momentum has been notable in the past year.

I don't believe its current valuation is expensive. The stock trades right now at a forward P/E ratio of about 41. At first glance, you might think this is not a bargain by any means. But in the context of the company's earnings growth trajectory, it looks more appealing.

SoFi generated earnings per share (EPS) of $0.39 in 2024, its first full year of being profitable on a GAAP (generally accepted accounting principles) basis. The leadership team is projecting EPS of $0.68 (at the midpoint of its estimates) in 2026. After that, their outlook is that this key metric will grow at a compound annual rate of 20% to 25%.

On one hand, it's best to take such forecasts with a grain of salt. Consider, though, that SoFi has exceeded Wall Street's average EPS estimate in each of the past 11 quarters. This could be a sign that management is making a habit of guiding analysts toward setting expectations that it will likely be able to beat.

And it's important to remember that SoFi is a fully digital bank. It has no physical branches to deal with. Its lower infrastructure costs should make it easier for it to increase its profits in the years ahead as it scales up further.

While I wouldn't go so far as to say this fintech stock could set you up for life, it does look like a smart buying opportunity right now.