Prominent stock analyst Stephen Guilfoyle has provided updated insights on two notable companies ahead of their upcoming earnings reports – Rocket Lab USA and SoFi Technologies.
Rocket Lab USA has demonstrated remarkable performance in the market, with its stock value increasing by 101.5% year-to-date and showing an impressive 172.4% rise compared to the previous year. Guilfoyle, who has been analyzing stocks since his time as a New York Stock Exchange trader in the 1980s, recently adjusted his target price for the company multiple times, ultimately removing his $9.50 target when the stock surpassed expectations at $9.94.
The aerospace company is scheduled to release its third-quarter results on November 12. Industry analysts project earnings per share between 0-10 cents, which could adjust to a loss of 8 cents per share, with anticipated revenue of $102.4 million. This would represent a 51% year-over-year revenue growth, with expectations of over 100% growth in the fourth quarter.
KeyBanc’s five-star analyst Philip Gibbs maintains a “buy” rating on Rocket Lab, having increased his target price from $8 to $11. The company recently secured a significant NASA contract to study Mars sample retrieval, a project CEO Peter Beck described as “one of the most ambitious and scientifically important endeavors humanity has ever embarked upon.”
Regarding SoFi Technologies, the fintech company is preparing to announce its third-quarter results on October 29. The company’s stock has risen 5.6% since the beginning of 2024 and shows a 42.6% increase from the previous year. Wall Street anticipates a GAAP EPS of $0.04 with revenue reaching $632 million, potentially marking the company’s fourth consecutive profitable quarter with 19% revenue growth.
SoFi recently announced a substantial $2 billion agreement with Fortress Capital to expand its personal loans business. CEO Anthony Noto emphasized the strategic importance of the loan platform in serving member needs and diversifying revenue sources. Guilfoyle has raised his price target for SoFi to $13.25 from $10.25, noting that all ten sell-side analysts tracking the stock have increased their third-quarter earnings estimates.
Citi analyst Andrew Schmidt maintains a positive outlook on SoFi, recently raising his price target to $12.50 from $11 with a continued buy rating. Schmidt indicates that conditions remain favorable for positive sector performance as the fintech group approaches
third-quarter reports.
Guilfoyle suggests that several factors support improved stock valuations, including a stable macro environment, steady-to-lower rates, improved fund flows, better sentiment regarding larger-cap multiple ceilings and transitions, and continuing profitability improvements. He anticipates SoFi entering a consolidation period with a pivot point around the recent high of $10.49, indicating potential for further upward target price adjustments.
The analysis reflects growing confidence in both companies’ market positions, with Rocket Lab capitalizing on expanding space exploration opportunities and SoFi strengthening its position in the financial technology sector through strategic partnerships and consistent profitability improvements.