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3 Reasons to Add Navient (NAVI) Stock to Your Portfolio Now

Zacks Equity Research

Navient Corporation NAVI seems to be a solid bet now based on its inorganic growth efforts and promising earnings projections. Also, it continues to deploy technology platform and digital marketing tools to attract loan originations that bode well for financials.

Navient is the biggest portfolio holder of education loans insured or guaranteed under the Federal Family Education Loan Program and Private Education Loans.

The company’s Zacks Consensus Estimate for current-year earnings has been revised 1.9% upward over the past 30 days, reflecting analysts’ optimism regarding its earnings growth potential. Thus, the stock currently sports a Zacks Rank #1 (Strong Buy).

Notably, Navient’s shares have gained 12.9% so far this year.

Navient Corporation Price

Navient Corporation Price
Navient Corporation Price

Navient Corporation price | Navient Corporation Quote

Why Navient is an Attractive Buy 

Earnings Per Share Strength: Navient’s long-term (three-five years) estimated earnings growth rate of 3% promises rewards for investors, over the long run. Also, it recorded average positive earnings surprise of 12.1% over the trailing four quarters.

Inorganic Growth Efforts: Navient seems on track with its initiatives, which lays the foundation for independent growth. Since 2015, the company has been strengthening its asset recovery and business process outsourcing capabilities through acquisitions. In November 2017, it acquired Earnest — a financial technology and education-finance company — serving consumers unable to get finance from traditional banks. The company’s focus on tapping growth opportunities to boost overall business seems encouraging. 

Superior Return on Equity (ROE): Navient’s ROE of 15.10% compared with the industry average of 14.25%, reflects the company’s commendable position over its peers.

Other Stocks to Consider

Enova International, Inc. ENVA has witnessed 6.1% upward estimate revision for current year earnings over the past 60 days. Additionally, the stock has jumped more than 7% in the past six months. It currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

World Acceptance Corporation WRLD also flaunts a Zacks Rank #1. Over the past 60 days, it has witnessed an upward earnings estimate revision of 3.3% for the current year. Additionally, the stock has gained around 34% in the past six months.

First Cash, Inc. FCFS has witnessed 2.1% upward estimate revisions over the past 60 days. Also, the company’s shares have risen nearly 16.1% in six months’ time. It holds a Zacks Rank of 2 (Buy), at present.

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