SLM Corp (SLM) Stock AnalysisSLMSLM Corp

SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Company’s primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customers’ total finance charges. The Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others. It operates in the Financials sector (PERSONAL CREDIT INSTITUTIONS industry).

SLM Corp is not a good buy right now due to its current price of $19.415, which is significantly below the average analyst price target of $28. However, the stock has seen a drastic decline of 29.17% year-to-date, indicating potential undervaluation. The RSI is at a low 19.58, suggesting it is oversold, but the recent earnings report showed a surprising EPS of -0.19, which is concerning. The main risk is the increased net charge-off guidance, now projected at $400 million to $420 million, which could further pressure the stock.

10 analysts cover SLM: 9 rate it Buy, 1 Hold and 0 Sell. The average price target is 31.09.