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Synchrony Financial (SYF), founded in 1932 and headquartered in Stamford, Connecticut, is a prominent player in the financial services industry. Valued at $17.26 billion by market cap, Synchrony is renowned as one of the largest providers of private-label credit cards in the U.S. The company partners with major retailers, healthcare providers, and manufacturers, delivering tailored financial solutions and consumer financing options. SYF’s innovative approach to consumer finance and its extensive network of retail partnerships underscore its significant role in shaping the consumer credit landscape.
Synchrony Financial has outperformed the broader market over the last year. The stock has gained 39.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 24.5%. In 2024 alone, shares of SYF rose 12.6%, surpassing SPX's 9.8% gains on a YTD basis.
Narrowing the focus, SYF’s outperformance looks more pronounced compared to the iShares U.S. Financial Services ETF (IYG). The exchange-traded fund has gained 29.5% over this period. Moreover, the ETF’s 8.8% gains on a YTD basis trail behind the stock's returns during the same period.
On Apr. 24, Synchrony Financial reported its Q1 results, missing Wall Street expectations for both EPS and revenue. However, the stock gained 5.1% on the day it released earnings.
For the current fiscal year, ending in December, analysts expect SYF’s EPS to grow 10.8% to $5.75 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on another occasion.
Among the 20 analysts covering SYF stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and two “Strong Sells.
This configuration is significantly more bullish than three months ago, with three analysts suggesting a "Strong Sell."
On May 16, Barclays analyst Terry Ma maintained a “Hold” rating on Synchrony Financial with a price target of $37.00. However, Sanjay Sakhrani from KBW maintained a “Buy” rating for the stock, with a price target of $62.00.
The mean price target of $45.55 represents a 6% premium to SYF’s current price levels. The Street-high price target of $62 suggests an ambitious upside potential of 44.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
