We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Synchrony Financial (SYF) Up 177% in a Year: More Room to Run?
Read MoreHide Full Article
Synchrony Financial (SYF - Free Report) has emerged as an investor favorite stock on the back of its strategic initiatives.
Over the past seven days, the company has witnessed its 2021 and 2022 earnings estimates move 0.4% and 0.2% north, respectively. This instills investors' confidence in the stock.
In the past year, shares of this currently Zacks Rank #2 (Buy) company have gained 177.4%, outperforming its industry’s growth of 23.7%.
As a leading card issuer, inorganic story has always been one of its key growth trajectories. It frequently resorts to alliances and buyouts to enhance its capabilities and diversify its business profile. The company is actively expanding its collaborations to boost its portfolio. Apart from tying up with biggies, it even became the card issuer of Walgreens’ co-branded credit card program in the United States.
Synchrony Financial also revised its relationship with Mattress Firm. It even reached an agreement to buy Allegro Credit, a leading provider of point-of-sale consumer financing for audiology products and dental services. It’s needless to say that additional financing options aid people in taking informed and faster decisions about choosing treatment options per the needs of their families.
The company has been witnessing revenue strength since 2013 owing to its rising interest income. Although the same suffered the pandemic blow partially, we expect its total interest income to bounce back on the backs of CareCredit network expansion, strategic initiatives and digital capabilities.
Another factor that should be noted in this regard is its restructuring measures. The company invested $89 million in the third quarter of 2020. Last year, it managed to decrease 4.5% of its costs year over year on the back of lower purchase volume, reduced employee costs, etc. The streamlining initiative is expected to decline expenses by around $210 million during 2021. Management expects to continue with its cost-saving efforts even more after 2021.
Further Upside Left?
We believe that the company is well-poised for growth on the back of various strategic actions.
The stock carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.
The Zacks Consensus Estimate for the company’s 2021 earnings indicates an improvement of 121.6% from the year-ago reported figure.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Synchrony Financial (SYF) Up 177% in a Year: More Room to Run?
Synchrony Financial (SYF - Free Report) has emerged as an investor favorite stock on the back of its strategic initiatives.
Over the past seven days, the company has witnessed its 2021 and 2022 earnings estimates move 0.4% and 0.2% north, respectively. This instills investors' confidence in the stock.
In the past year, shares of this currently Zacks Rank #2 (Buy) company have gained 177.4%, outperforming its industry’s growth of 23.7%.
Companies in the same space, such as Jefferies Financial Group Inc. (JEF - Free Report) , American Express Company (AXP - Free Report) and Discover Financial Services (DFS - Free Report) have also soared 128.6%, 65.2% and 180.9%, respectively, in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
As a leading card issuer, inorganic story has always been one of its key growth trajectories. It frequently resorts to alliances and buyouts to enhance its capabilities and diversify its business profile. The company is actively expanding its collaborations to boost its portfolio. Apart from tying up with biggies, it even became the card issuer of Walgreens’ co-branded credit card program in the United States.
Synchrony Financial also revised its relationship with Mattress Firm. It even reached an agreement to buy Allegro Credit, a leading provider of point-of-sale consumer financing for audiology products and dental services.
It’s needless to say that additional financing options aid people in taking informed and faster decisions about choosing treatment options per the needs of their families.
The company has been witnessing revenue strength since 2013 owing to its rising interest income. Although the same suffered the pandemic blow partially, we expect its total interest income to bounce back on the backs of CareCredit network expansion, strategic initiatives and digital capabilities.
Another factor that should be noted in this regard is its restructuring measures. The company invested $89 million in the third quarter of 2020. Last year, it managed to decrease 4.5% of its costs year over year on the back of lower purchase volume, reduced employee costs, etc. The streamlining initiative is expected to decline expenses by around $210 million during 2021. Management expects to continue with its cost-saving efforts even more after 2021.
Further Upside Left?
We believe that the company is well-poised for growth on the back of various strategic actions.
The stock carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.
The Zacks Consensus Estimate for the company’s 2021 earnings indicates an improvement of 121.6% from the year-ago reported figure.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>