SLM : Cheap Valuation Meets Rising Credit Risk
SLM Corporation is currently trading at a low price-to-earnings ratio of 6.6x despite reporting strong earnings in Q1 2026. The company raised its full-year earnings guidance, indicating confidence in its financial performance. However, rising overdue loans and increased provisions for credit losses suggest growing credit risk that investors should consider.
- ▪SLM Corporation reported a Q1 2026 EPS of $1.54, exceeding expectations.
- ▪The company raised its full-year guidance to between $3.10 and $3.20.
- ▪Overdue loans increased to 3.98% compared to 3.58% year-over-year, indicating rising credit risk.
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