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Synchrony Financial (SYF), headquartered in Stamford, Connecticut, is a major consumer financial services provider specializing in retail finance and credit products. With a market cap of $25.5 billion, Synchrony offers a comprehensive suite of credit, financing, and savings solutions, empowering consumers and businesses to achieve their financial goals.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” and Synchrony Financial holds its place in this category. With a strong focus on innovation and customer-centric solutions, Synchrony provides comprehensive credit and financing products that empower consumers and businesses. The company’s dedication to delivering value through strategic partnerships and advanced financial tools drives growth and fosters financial well-being for its customers worldwide.
Shares of Synchrony Financial are trading 5.7% below their 52-week high of $69.39, hit on Dec. 9. SYF stock has gained 31.7% over the past three months, outperforming the Financial Select Sector SPDR Fund(XLF), which has gained 6.6% over the same time frame.
Over the longer term, SYF has surged 47.2% over the past six months, outperforming XLF's 17.2% return. Similarly, over the past 52 weeks, SYF's impressive 72.5% gain surpassed XLF's 29.7% rally.
SYF has consistently stayed above its 200-day moving average over the past year and has been trading above the 50-day moving average since September, indicating a bullish trend.
SYF stock gained over 2% after Wells Fargo Securities upgraded the stock from "Equal-Weight" to "Overweight" and set a price target of $85.
Earlier, shares of Synchrony Financial surged 6.1% on Oct. 16 following robust Q3 earnings. Adjusted EPS increased 31.1% year over year to $1.94, beating Wall Street's estimate of $1.77. Revenue reached $4.61 billion, exceeding the consensus forecast of $4.51 billion. Net earnings rose 26% to $789 million, up from $628 million.
SYF’s rival, American Express Company (AXP), has underperformed SYF and gained 61% over the past 52 weeks.
Analysts hold a cautiously optimistic view of SYF's prospects, highlighting its strong performance compared to the broader sector. SYF has a consensus rating of “Moderate Buy” from the 21 analysts covering the stock and has a mean price target of $72.47, suggesting a potential upside of 10.7% from its current price.
