SoFi (SOFI) Just Became the #1 Financial Stock to Buy Right Now—Here’s Why

Wall Street's sleeping giant just woke up—and it's not your grandfather's bank.

SoFi isn't just another fintech player. It's a full-scale financial revolution packed into one stock. While traditional banks cling to brick-and-mortar relics, SoFi's digital-native approach slices through legacy inefficiencies like a hot knife through regulatory butter.

The one reason? Dominance through diversification.

SoFi built a ecosystem that captures users for life—student loans, investing, crypto, even credit cards. It's the Amazon of financial services, if Amazon actually made profit margins look sexy. They bypass old-school banking hurdles by leveraging tech to cross-sell services most banks can't even spell.

And let's be real—in a sector where 'innovation' often means adding a new fee category, SoFi actually delivers value. Their model thrives on member growth and engagement, not hidden charges or overdraft surprises.

While traditional finance giants play checkers, SoFi's playing 4D chess—with your portfolio's future. Maybe that's why the smart money's betting big on the one stock that actually gets modern finance. The rest? Still trying to figure out how to mobile deposit a check.

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1 Reason SoFi is still one of the best financial stocks to buy

In full disclosure, SoFi is my largest financial sector investment, and there are plenty of good reasons why it's still an excellent long-term stock to buy. For example, the fast-growing loan platform that originates loans on behalf of third-party banks is creating a growing stream of high-margin fee income. The return of cryptocurrency trading to the platform later this year could also be a big catalyst.

However, one aspect that is often overlooked is SoFi's other loan verticals -- student loans and home loans.

The private student loan business came screeching to a halt during the pandemic, thanks to federal loan repayment pauses and the promise of more loan forgiveness. Now that student loan interest and payments have resumed, SoFi's student loan refinancing business could soar. In fact, SoFi's student loan volume in the second quarter was 152% higher than it was two years ago.

Home loans are an even more interesting component. SoFi grew its home loan business by 92% year over year in the second quarter despite a persistent high-rate environment. As rates fall, there will be a massive opportunity in both purchase mortgages and refinancing, as home equity in the United States is at its highest level ever.