Technical Analysis
SLM stock shows a bearish trend in the short term after missing Q4 earnings expectations. The stock has formed a descending channel pattern with lower highs and lower lows. Key technical indicators suggest continued downward pressure:
- RSI indicates oversold conditions
- MACD shows bearish crossover
- Support level at $130 being tested
- Volume increasing on down days
News Impact
Recent negative catalysts:
- Q4 earnings missed estimates with EPS of $0.50 vs $0.55 expected
- Revenue declined 11.9% YoY to $390M
- GAAP EPS of $0.15 significantly missed by $0.40
However, Morgan Stanley upgraded ratings for consumer credit firms including SLM based on positive 2025 outlook.
Price Prediction (March 4-8)
Based on technical analysis and recent earnings miss:
- Bearish target: $12.80 (-5%)
- Most likely target: $13.20 (-2%)
- Bullish target: $13.80 (+2%)
Recommendation: SELL
- Current technical weakness and earnings disappointment suggest further downside
- Wait for price stabilization and improved fundamentals before considering long positions
- Set stop loss at $13.90 if holding short positions
- Target exit price: $12.80
Technical Analysis
SLM stock shows a bearish trend in the short term after missing Q4 earnings expectations. The stock has formed a descending channel pattern with lower highs and lower lows. Key technical indicators suggest continued downward pressure:
- RSI indicates oversold conditions
- MACD shows bearish crossover
- Support level at $130 being tested
- Volume increasing on down days
News Impact
Recent negative catalysts:
- Q4 earnings missed estimates with EPS of $0.50 vs $0.55 expected
- Revenue declined 11.9% YoY to $390M
- GAAP EPS of $0.15 significantly missed by $0.40
However, Morgan Stanley upgraded ratings for consumer credit firms including SLM based on positive 2025 outlook.
Price Prediction (March 4-8)
Based on technical analysis and recent earnings miss:
- Bearish target: $12.80 (-5%)
- Most likely target: $13.20 (-2%)
- Bullish target: $13.80 (+2%)
Recommendation: SELL
- Current technical weakness and earnings disappointment suggest further downside
- Wait for price stabilization and improved fundamentals before considering long positions
- Set stop loss at $13.90 if holding short positions
- Target exit price: $12.80