Index removals put SLM stock in focus
SLM (SLM) has been removed from several Russell growth benchmarks, including the Russell 1000 and 3000 Growth indexes. This is a broad shift that can affect index-linked fund flows and trading volumes.
For you as an investor, these deletions matter mainly because index funds and certain ETFs that track these benchmarks may adjust their holdings. This can influence short term liquidity and pricing. The move also sits alongside SLM's recent product news, including a new Sallie Mae Parent Loan and an upcoming second quarter 2026 earnings release.
See our latest analysis for SLM.
At a share price of $24.73, SLM has seen a 15.18% 90 day share price return and a 7.29% 30 day share price return, while its 1 year total shareholder return declined 25.07%. Recent momentum therefore contrasts with weaker longer term performance, as index removals and the new Parent Loan launch reset expectations.
If SLM's recent moves have you thinking about where else capital might work, it could be a good moment to scan 18 top founder-led companies for fresh ideas.
For SLM, bulls point to the new Parent Loan, solid profitability and a discount to analyst targets, while bears lean on index removals and recent revenue and net income declines. Which case does the valuation support next?
Most Popular Narrative: 14.2% Undervalued
On the most followed narrative, SLM's fair value of $28.82 sits above the last close at $24.73, framing the stock as modestly undervalued with a long term lens.
The recently enacted federal student loan reforms, which cap borrowing under Parent PLUS and eliminate Grad PLUS, are expected to shift $4.5–$5 billion in annual loan volume from the federal to the private market, directly expanding SLM's addressable market. This is poised to drive higher revenue growth beginning in 2027 as the impact phases in.
Want to see how this federal shift feeds into SLM's fair value math? The narrative leans heavily on changing revenue trajectories, margin resilience and a higher future earnings multiple.
Result: Fair Value of $28.82 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this SLM narrative could be knocked off course if credit losses rise faster than expected or if regulatory changes significantly reduce demand for private student loans.
Find out about the key risks to this SLM narrative.
Next Steps
With SLM's mix of concerns and bright spots in view, this is a moment to act quickly and test the numbers for yourself, starting with the 2 key rewards and 3 important warning signs.
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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.
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