Should You Buy SoFi While It's Below $30?

Many financial services companies benefited from a booming economy and robust consumer spending over the past few years, including SoFi Technologies (SOFI -1.96%). The company has moved beyond its initial focus of student loans and added a slew of new financial services over the past few years to attract customers. SoFi's growth has been tremendous recently, and its share price gains of more than 300% over the past three years have boosted many investors' portfolios. But after all of those gains, is SoFi stock still worth buying while it's under $30? Here's why investors should be optimistic about SoFi's future, and one word of caution if you buy the stock now. Image source: Getty Images. SoFi shows no signs of slowing down SoFi's second-quarter results showed the company's continued momentum, with revenue rising 44% from the year-ago quarter to $858 million, and earnings skyrocketing 700% to $0.08 per share. SoFi also added a record 850,000 new members in the quarter, a 34% increase, giving the company a total of 11.7 million members. All those members helped push fee-based revenue up by 72% to $378 million. The quarter was so good, in fact, that management raised its full-year guidance. SoFi's management said that sales will be about $3.38 billion in 2025, and net income will reach around $370 million, up from its previous estimates of about $3.27 billion in sales and $325 million in net income. The company also estimates that it will add at least 3 million new members this year, a 30% increase from 2024. One thing to keep in mind with SoFi stock SoFi is clearly offering services that its members want and is adept at finding new ways to grow. But I think it's worth pointing out that its quick share price gains over the past few years now make SoFi stock relatively expensive, with a price-to-earnings (P/E) ratio of 52. That's compared to the S&P 500's average P/E multiple of about 30. Lots of stocks look expensive right now, so that's not a huge red flag. But it's important to keep in mind, especially as there are some signs that the U.S. economy could be slowing down. The U.S. added just 73,000 jobs in July, and job growth was substantially revised downward for the previous two months. SoFi is reliant on the economy remaining strong, and on its members to continue borrowing and spending money. If an economic slowdown is around the corner, SoFi growth could stall, and some of the impressive results investors have been used to seeing each quarter could fade. Investors can keep an eye on this by looking at the company's delinquency rates and charge-offs. So far, things look solid on this front. SoFi's annualized charge-off rate decreased in Q2 from 3.31% to 2.83%, and its 90-day delinquency rate for personal loans decreased for the fifth consecutive quarter to 0.42%. If this trend reverses, it would be a bad sign for the company. So, is SoFi stock a buy right now? I think buying SoFi stock could still be a good idea for long-term investors. But keep in mind that you're paying a premium for the stock, and any economic turbulence would likely be felt by the company and its members. If you're comfortable with both of those factors, opening a position could be a good decision and pay off years from now. Just don't expect some of the same share price growth that SoFi stock has experienced over the past few years.