The Panic-Proof Portfolio (Stockchase Research) SLM Corp. SLM-Q PAST TOP PICK Apr 10, 2025

SLM provides student loans in the US.  Recently reported earnings showed EPS grew almost three fold over the year.  Loan delinquencies has dropped to under 3%.  It trades at 8x earnings, 2.5x book and supports a ROE of 38%.  Cash reserves are prudently being used to aggressively retire debt and buy back shares.  We recommend placing a stop-loss at $17.50, looking to achieve $25 -- upside potential of 20%.  Yield 2.1%

We reiterate SLM, provider of student loans in the US, as a TOP PICK.  It is prudently using some cash reserves to aggressively retire debt and buy back shares.  It trades at 8x earnings, 2.5x book value and supports and excellent ROE of 38%.  We continue to recommend a stop at $17.50, looking to achieve $25.00 -- upside potential of 19%.  Yield 2.1%

As unemployment rates for the over-25 college group declines, we reiterate SLM as a TOP PICK.  This trend will encourage future enrollment in student loans for the next several quarters, analysts report.  We like that debt is aggressively being retired, while cash reserves continue to grow.  It trades at 8x earnings, 2.4x book and supports a 36% ROE.  We recommend maintaining the stop at $17.50, looking to achieve $26.00 -- upside potential of 19%.  Yield 1.9%

We reiterate SLM, provider of student loans in the US as a TOP PICK.  Recently reported earnings showed that cash reserves are growing as shares are bought back. Loan originations are up 13% and charge-offs are declining.  A plateau in interest rates should assist margins going forward management expects.  We recommend trailing up the stop (from $17.50) to $19.50, looking to achieve $27.00 -- upside potential of 21%.  Yield 2.3%

Our PAST TOP PICK with SLM has achieved its target at $27.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $19.50) to $21.50.

Our PAST TOP PICK with SLM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $21.50) to $24.00 at this time.  

Our PAST TOP PICK with SLM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $24) to $26 at this time.