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    SLM (SLM), Why Is The Stock Back In Focus?

    Simply Wall St·10/08/2026 16:22:27
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    SLM (SLM) has drawn fresh attention after a stretch of weaker recent returns, with the share price down about 17% year to date and roughly 13% over the past year.

    SLM’s recent slide, including a 16.5% decline in the 1-month share price return, suggests momentum has cooled, even though the 3-year total shareholder return of 80.5% still reflects a much stronger longer-term outcome.

    Round out your view on SLM by comparing it with a hand picked 29 high quality undervalued stocks that currently score well on quality and valuation checks.

    After a drop of roughly 17% this year, SLM now trades at a level some will see as an early entry point, while others might prefer to wait for clearer value signals before stepping in. What does the current valuation actually indicate?

    Most Popular Narrative: 21% Undervalued

    Against SLM’s last close at $22.60, the most followed narrative points to a fair value of $28.55. This frames today’s pullback as a discount that depends on how reform driven loan demand, partnerships and buybacks actually develop.

    Federal student loan reforms that cap Parent PLUS and remove Grad PLUS are still expected to redirect an estimated US$4.5b to US$5.0b in annual volume into the private market over the next several years. This could lift SLM Corporation’s private student loan originations and support higher interest income and fee revenue as that volume is priced and funded.

    See why 3 investors see SLM as 21% undervalued.

    Result: Fair Value of $28.55 (UNDERVALUED)

    Still, the SLM story hinges on credit costs and expenses, with higher net charge offs and a much weaker efficiency ratio both capable of undermining this undervaluation case.

    Find out about the key risks to this SLM narrative.

    Next Steps

    Mixed views on SLM so far. If you want to move quickly and build your own stance on the opportunity and the downside, start with the 4 key rewards and 4 important warning signs.

    Looking for more ideas beyond SLM?

    Do not stop your research with SLM alone. Broaden your watchlist with targeted ideas that can sharpen your next move and reduce the chance of missing something important.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.