Spotting Winners: Navient (NASDAQ:NAVI) And Consumer Finance Stocks In Q1

September 17, 2025 at 23:33 PM EDT

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Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Navient (NASDAQ: NAVI) and its peers.

Consumer finance companies provide loans and credit products to individuals. Growth drivers include increasing consumer spending, financial inclusion initiatives in developing markets, and digital lending platforms reducing distribution costs. Challenges include credit risk during economic downturns, regulatory scrutiny of lending practices, and intensifying competition from traditional banks and fintech firms offering innovative credit solutions.

The 17 consumer finance stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 5.4% while next quarter’s revenue guidance was 1.5% below.

In light of this news, share prices of the companies have held steady as they are up 3.7% on average since the latest earnings results.

Navient (NASDAQ: NAVI)

Spun off from Sallie Mae in 2014 to handle the company's loan servicing and collection operations, Navient (NASDAQ: NAVI) provides education loan servicing and business processing solutions that help manage federal student loans, private education loans, and government services.

Navient reported revenues of $195 million, down 26.7% year on year. This print exceeded analysts’ expectations by 9.5%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates.

Navient delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 3.1% since reporting and currently trades at $13.11.

Is now the time to buy Navient? Access our full analysis of the earnings results here, it’s free.

Nelnet (NYSE: NNI)

Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet (NYSE: NNI) provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans.

Nelnet reported revenues of $516.1 million, up 61% year on year, outperforming analysts’ expectations by 36.2%. The business had an incredible quarter with a beat of analysts’ EPS estimates.

Nelnet scored the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $125.19.

Is now the time to buy Nelnet? Access our full analysis of the earnings results here, it’s free.

Sallie Mae (NASDAQ: SLM)

Originally created as a government-sponsored enterprise before privatizing in 2004, Sallie Mae (NASDAQ: SLM) is a financial services company that provides private education loans, savings products, and educational resources to help students and families pay for college.

Sallie Mae reported revenues of $403.6 million, down 21.5% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 12.2% since the results and currently trades at $28.10.

Read our full analysis of Sallie Mae’s results here.

SoFi (NASDAQ: SOFI)

Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.

SoFi reported revenues of $854.9 million, up 42.8% year on year. This number topped analysts’ expectations by 5.7%. Overall, it was a stunning quarter as it also produced a beat of analysts’ EPS and transaction volumes estimates.

The company reported 11.75 million active customers, up 33.9% year on year. The stock is up 29.7% since reporting and currently trades at $27.29.

Read our full, actionable report on SoFi here, it’s free.

LendingClub (NYSE: LC)

Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE: LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.

LendingClub reported revenues of $248.4 million, up 32.7% year on year. This print beat analysts’ expectations by 9.2%. It was an incredible quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 31.1% since reporting and currently trades at $17.22.

Read our full, actionable report on LendingClub here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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