As one of the many casualties from the ongoing tech selloff, SoFi Technologies (NASDAQ:SOFI) stock found itself with a shrinking price in the last few months. However, there are reasons to believe a turnaround is on its way.

In recent months, investors have been extremely fearful about inflation, US interest rates and the Russian occupation of Ukraine. Growth stocks have seen a major hit, with investors flocking to safer assets. The correction that started in March continues to put downward pressure on technology stocks.

However, many of these stocks are now trading at attractive valuations, making the industry seem more appealing to risk-tolerant investors.

CEO Anthony Noto agrees with this overall sentiment, so he has recently picked up a healthy number of shares. Since March, the executive has bought approximately $1.5 million of SoFi stock.

It is a clear indication Noto believes that the stock is undervalued right now and has a lot of upside at current rates.

He is not the only one who thinks so. Analyst Kevin Barker of Piper Sandler boosted SOFI stock to overweight from neutral. He believes markets are underestimating the earnings potential for this stock, which makes it an attractive option for those who are planning to invest.

Why SoFi Stock Is a Buy

Tech-based growth stocks’ only option is to maintain positive financials and keep the company growing. SoFi is performing on that end and ticks an important box for the company.

SoFi offers clients a whole range of financial products, including refinancing for student loans, auto loans, mortgages and credit cards. Their mobile app can also help you manage your finances, such as investing and banking. SoFi is an innovative company with a wide variety of financial options for everyone.

Their revenue in the first quarter was $321.7 million, outdoing Wall Street estimates by a significant margin. They also had confident numbers regarding their profit and loss, finishing with a net earnings loss of 14 cents per share which investors might expect given those positive results.

For the seventh time consecutively, adjusted EBITDA has ended the quarter with positive income growth. These financials rose 110% year over year to $8.7 million.

The number of members continues to rise and the company is thanking them for this by giving them even more of what they wanted. With the increase in offerings, more customers have been brought on board and the rate of expansion has increased.

The company is on a roll, posting projected revenue of close to $1.5 billion in fiscal 2022 and stabilizing with a net loss of $0.46 per share. There was a positive turnaround last year, so they’re confident they can continue the momentum.

What Risks Is SoFi Facing?

As is the case with growth stocks across the board, SoFi does not come without risks. For one thing, uncertainty surrounds developments in the tech industry. One thing we can’t know is when they’ll subside.

Another major issue is the extension of the student loan moratorium. Graduates are increasingly unable to repay their tuition-based loans due to a smaller work pool and lack of standard job opportunities. Research has shown that, in general, this policy has been helpful to millions of students across the country. However, SoFi has suffered a massive downturn due to this policy.

SoFi’s student lending business has been cut in half since the initial pause of payments back in March 2020, according to its CEO. The delay has been extended multiple times, and SoFi believes the Biden administration will extend beyond August 2022.

In response, SoFi has revised its forecast for the year, with a net $1.47 billion in revenue and an annualized EBITDA of $100 million. This is down notably from the previous forecast of $1.57 billion in revenue and an annualized EBITDA of $180 million.

However, SoFi is still expecting to make revenues of around $280-$285 million and up to $5 million in EBITDA during the first quarter of 2022.

SoFi Stock Is Attractive at Current Rates

We are firmly in a bear market. There are several estimates as to when it will end. According to at least one note from Bank of America (NYSE:BAC) research analysts, if history is any indication, things could be back on track by October.

Whether that will transpire one thing is for certain: companies like SoFi will not remain at these rates forever. Sooner rather than later, SoFi stock will come roaring back. In the meantime, you have the opportunity to purchase this stock at a steep discount finally.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.