 Hey everyone, this is Dan. The banking stocks have fallen a lot in the last month because of the failures of the Silicon Valley Bank, signature bank, and credit suites. Many investors are worried that other banks might fail also. There is however one bank, the SOFI bank, which has been growing and is in a very solid financial situation compared to the other banks. This might be a good opportunity to buy SOFI stock on the cheap. In this video, I will show you why the price of SOFI can possibly double within the next couple years. I'd like to suggest for you to also check out my Twitter account, which is DanMarketL, in addition to watching my YouTube financial videos. I share with my Twitter subscribers my latest trades, as well as providing them with some updates about the stocks that I follow. Let's talk about SOFI bank. First of all, let's look at how SOFI has been trending in the last year. Both SPY and QQQ went down 7.35% in the last year. The banking ETF XLF went down 13%, SOFI went down 22%, not very good. The reason why SOFI has dropped more than the broad market and more than the banking sector is probably because SOFI is a relatively new bank. They got their regulatory approval to become a national bank only in January of 2022. So far, they have not been making a profit yet. Their revenues and EPS trends, however, are saying that they will be profitable in 2023. I will talk more about that in the next few minutes. If you look at the last 20 days, SOFI has outperformed the banking sector but is still lagging behind SPY and QQQ. SOFI Bank's official name is SOFI Technologies, they are an online bank. They have three operations, lending, technology platform, and financial services. In their annual report for 2022, they show that their revenues were $1.76 billion. The net income was minus $320.41 million and the 2022 sales growth was an impressive 62.08%. Their revenues have been increasing steadily from quarter to quarter for the last two years. As you can see in this chart, the EPS dotted out to be quite negative as it is typical for a startup company, but the EPS has been trending towards becoming positive. I'll talk more about that later. When I plot the quarterly revenues and costs for SOFI and extrapolate the lines into the future, I see that SOFI will most likely become profitable around June of 2023. This is definitely one of the reasons why I believe it might be a good time to buy SOFI now. There are more good news about the company. I will cover them in the next few minutes. These are the financial charts from the Better Investing Stock Selection Guide database. The black line here is SOFI, the blue line is industry average. As you can see, SOFI sales have been growing much faster than the industry average. Their EPS has been negative, all we know already. Their debt to capital ratio has improved in the last couple years and is not as good as or better than the industry average. Their return on equity is a little below the industry average for now, but hopefully that will improve in the next few months. Let's look at how much SOFI's were. I start with checking the PE ratios for the leading banks and also look at Block and PayPal, the two very large online financial companies. You can see that the PE ratios range from 6.5 to 27 with the online players commanding the high PE ratios. Remember the chart we showed them a few seconds ago for SOFI. I extrapolated this chart all the way to the end of 2024. I then add up the projected net income for 2024 and calculated the EPS based on the number of shares outstanding today. I assumed a PE ratio of 5, which is very conservative compared to the PE ratios of these other financial entities. I arrived at the calculated stock price of $25.84 for the end of 2024. Based on these calculations, I project a very conservative price of $14 a share for SOFI to be reached by the end of 2024. Let's see what the professional analysts have been saying about SOFI. Yahoo, Tiptranks, and CNM Money rated SOFI as a bi- or moderate bi-candidate. Louis Nevillea gives SOFI a C rating, which is a whole rating. They have been two upgrades and no downgrade by analysts in the last year, which is pretty good for a bank because many banks got downgraded in the last month. If you ask whether SOFI is under the same risks like Silicon Valley Bank, there is a recent article by C. King Alpha that answered the question. They are saying that SOFI is in a much stronger position than Silicon Valley Bank. First of all, SOFI's total deposit has been growing in 2022 when the total deposit at SVB or Sun Valley Bank was dropping quickly in 2022. 90% of the SOFI deposits are under $250,000 per person per account and hence insured by the FDIC. On the other hand, over 95% of the SVB accounts were uninsured. SOFI's unrealized losses are just 0.1% of their total deposits. SVB's unrealized losses were almost 9% of the total deposits. SOFI has other strengths as well. SOFI's unbalanced sheet, delinquency and charge-up rates are still below their pre-COVID levels. SOFI manages delinquency risk by maintaining extremely high credit standards. The personal loan borrowers have a weighted average income of $165,000 and a weighted average FICO of $747,000. They have a hard cut-off and FICO score of $680,000 below which they will not lend at all. That means they operate very conservatively, which is a good sign for this period of market volatility. SOFI purchases hedges against interest rate movements, mostly in the form of credit swaps, which will protect them against the interest rate fluctuation. SOFI checking and savings members will be able to protect their deposits with access to up to $2 million of FDIC insurance by way of the SOFI FDIC insurance network, a newly created partnership with multiple banks. So what are my strategies? I recently bought SOFI in the last couple weeks and made a small profit. I just bought SOFI shares again today during pre-market right after the March CPI numbers were released. I will buy more shares when the market conditions are right and will notify my Twitter subscribers. I will sell my shares if and when the price drops below $6 so that I can buy at a lower price later. Thank you for watching all the way to here. I'd like to remind you again to subscribe to my YouTube channel, as well as subscribing to my Twitter account. Please remember to click the like, subscribe and notification buttons below. As usual, I very much appreciate your comments, questions and suggestions. I'd like to remind you that I'm not a financial advisor. I share my stock trading strategies and analyses for educational and entertainment purposes only. If you want to buy or sell stocks, you should make your own decisions and you should definitely consult with your financial advisors before you do so. This wraps up my video for now. I will chat with you again in the next few days. In the meanwhile, I'd like to wish you the very best of luck with your financial investments.