What changed
$SLM — BUY 📊
🎯 Q2 2026 | Rev $1B | EPS $1.54 vs $1.20 🟢
💡 Consensus expected flat earnings due to NIM compression and rising charge-offs; instead, NIM expanded and credit quality improved. The market is mispricing the sustainability of these trends, leading to an earnings upgrade cycle not yet reflected in the share price.
📉 Reward/risk: 3.0:1
🏢 Business Quality: 7/10
📊 Valuation: cheap — trailing P/E 9.1x vs 5-year average 12x; P/TBV 1.2x vs peer average 1.5x. Fair value range $18–22 (P/E 12–14x)
🔮 Catalyst: Q2 2026 earnings release expected July 2026
💰 Entry: $14.0, stop $12.6, target $18.2
⚖️ Buy SLM: massive Q1 EPS beat reveals underestimated earnings power; with estimates still low and shares trading at 9x earnings, expect a 30% re-rating in 3 months as Q2 catalysts approach.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/SLM0625