Investors may have decided to "sell the news" on SoFi Technologies (SOFI 4.48%). However, while shares could stay in a slump in the near term, the digital-first bank's growth story remains intact.
SoFi's membership growth continues at a moderate pace. This points to further revenue growth at a moderate pace, and to even more rapid earnings growth. In turn, this could help SoFi sustain its elevated valuation, with the stock moving higher over time, in line with earnings growth.
However, while you may want to hold onto existing SoFi positions, or perhaps buy this stock if you've yet to do so, I've got another promising bank stock to include in a diversified, long-term-focused portfolio.
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An undervalued bank stock on the grow
For the year that ended Dec. 31, 2025, SoFi reported 37% year-over-year revenue growth and a 111% increase in adjusted net income. In terms of guidance, SoFi's management anticipates revenue and earnings-per-share (EPS) growth of 30% and 54%, respectively, next year.
NASDAQ: SOFI
Key Data Points
Over a longer time frame, sell-side analysts anticipate SoFi's EPS to grow by 31% in 2027, 17.5% in 2028, and nearly 14% in 2029.
In short, the bull case for SoFi Technologies is pretty straightforward. As the growth story continues, it's easy to envision shares rallying in line with increased earnings. Furthermore, the bull case behind SoFi reminds me a lot of the bull case with another bank stock, one considered an undervalued stock rather than a growth stock.
Don't get me wrong. I'm not about to drop on you some sort of value-trap bank stock, or a bank trading at a low valuation, but with questionable growth potential. Rather, the bank I'm thinking about, Citigroup (C 3.03%), could be considered an undervalued bank stock "on the grow."
That is, shares are cheaply priced, despite it being is in the midst of a growth resurgence.
Why Citigroup is a top buy-and-hold choice
Since late 2023, Citigroup shares have been surging higher. This is due to the success of CEO Jane Fraser's long-term turnaround of the money center bank. Through efforts ranging from downsizing to aggressive share repurchases, the bank has experienced steady improvement in its operating performance.
NYSE: C
Key Data Points
In 2024, Citigroup reported 3% revenue growth and 38% earnings growth. In 2025, excluding one-time items, the bank reported 6.5% revenue growth and 26.7% earnings growth. EPS increased 35%, to $7.97.
Citigroup shares have more than doubled during this time frame, but further upside may lie ahead. The bank continues to implement cost-cutting measures, including recently announced plans for layoffs starting in March. An ongoing consolidation of its retail banking and wealth management divisions could also yield growth and cost synergies. In 2026 and 2027, sell-side analysts anticipate EPS to hit $10.23 and $12.03, respectively.
If coupled with a rerating, this could mean further meaningful upside for shares. Right now, Citigroup trades for only 10.8 times forward earnings. Peers like Bank of America and JPMorgan Chase trade at forward multiples of 12 to 14. If shares rerate, the stock could rally by more than 50% between now and 2027. Given this appreciation potential, I believe Citigroup is another top financial stock to buy and hold.
