Shares of student loan provider Sallie Mae (NASDAQ:SLM) fell 16.4% in the morning session after multiple analysts downgraded the stock, citing concerns about a higher expense outlook. Morgan Stanley lowered its rating on the student loan company from 'Overweight' to 'Equalweight' and cut its price target. The change came after Sallie Mae presented a scenario that showed potentially higher-than-expected expenses in 2026 and 2027 as it prepared for new loan opportunities and potential government changes. Due to this outlook, Morgan Stanley reduced its earnings per share estimates for those years. Adding to the pressure, Compass Point also downgraded the stock more severely, from 'Buy' to 'Sell,' and significantly lowered its price target from $35.00 to $23.00.
A number of stocks jumped in the afternoon session after investors grew more optimistic about a potential Federal Reserve interest rate cut in December.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Washington D.C. – November 6, 2025 – The financial landscape of the United States is at a critical juncture as U.S. household debt has surged to a record-shattering $18.59 trillion in the third quarter of 2025. This unprecedented level, driven by substantial increases in mortgage, credit card, student, and
Sallie Mae’s third quarter results were met with a positive market reaction, despite falling short of Wall Street’s revenue and earnings expectations. Management credited loan origination growth and strong credit quality as key performance drivers, noting a 6.4% year-over-year increase in new loans and improved borrower profiles. CEO Jonathan Witter emphasized the company’s disciplined underwriting, highlighting that “the credit quality of originations remain strong, showing incremental improvement year-over-year.” The quarter also benefited from a completed loan sale, which generated significant gains and contributed to a more favorable operating margin.
Alexandria, VA – October 29, 2025 – Student loan servicing giant Navient (NASDAQ: NAVI) saw its shares tumble by a significant 10.9% today following the release of its third-quarter 2025 financial results, which dramatically missed analyst expectations for both earnings and revenue. The sharp decline sent ripples through the financial markets,
A number of stocks jumped in the afternoon session after a cooler-than-expected inflation report boosted investor confidence and fueled expectations for a Federal Reserve interest rate cut. The positive inflation data, showing the softest increase in the core Consumer Price Index (CPI) since May, has led investors to believe the Federal Reserve will soon lower borrowing costs. Markets widely anticipating a 25 basis point rate cut at the next Fed meeting. This optimism was further supported by strong economic growth indicators, with both the services and manufacturing sectors showing accelerated activity according to the S&P Global Flash Purchasing Managers' Index (PMI) data. The combination of easing price pressures and a thriving economy overshadowed concerns about an ongoing government shutdown, sending major indices like the S&P 500 to new record highs.
Student loan provider Sallie Mae (NASDAQ:SLM) fell short of the market’s revenue expectations in Q3 CY2025, but sales rose 42.1% year on year to $545.7 million. Its GAAP profit of $0.63 per share was 20.8% below analysts’ consensus estimates.
Student loan provider Sallie Mae (NASDAQ:SLM) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 42.2% year on year to $546 million. Its GAAP profit of $0.63 per share was 20.8% below analysts’ consensus estimates.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
While the S&P 500 is up 32.7% since April 2025, Sallie Mae (currently trading at $27.55 per share) has lagged behind, posting a return of 10.5%. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
