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Synchrony (SYF) Gains As Market Dips: What You Should Know
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Synchrony (SYF - Free Report) closed the most recent trading day at $32.96, moving +0.7% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the consumer credit company had lost 2.99% in the past month. In that same time, the Finance sector lost 1.78%, while the S&P 500 lost 2.28%.
Synchrony will be looking to display strength as it nears its next earnings release. On that day, Synchrony is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 13.77%. Our most recent consensus estimate is calling for quarterly revenue of $3.85 billion, up 5.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.87 per share and revenue of $15.42 billion. These totals would mark changes of -20.03% and +8.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Synchrony. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Synchrony is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Synchrony is currently trading at a Forward P/E ratio of 5.58. For comparison, its industry has an average Forward P/E of 10.56, which means Synchrony is trading at a discount to the group.
Investors should also note that SYF has a PEG ratio of 0.24 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.55 based on yesterday's closing prices.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Synchrony (SYF) Gains As Market Dips: What You Should Know
Synchrony (SYF - Free Report) closed the most recent trading day at $32.96, moving +0.7% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the consumer credit company had lost 2.99% in the past month. In that same time, the Finance sector lost 1.78%, while the S&P 500 lost 2.28%.
Synchrony will be looking to display strength as it nears its next earnings release. On that day, Synchrony is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 13.77%. Our most recent consensus estimate is calling for quarterly revenue of $3.85 billion, up 5.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.87 per share and revenue of $15.42 billion. These totals would mark changes of -20.03% and +8.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Synchrony. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Synchrony is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Synchrony is currently trading at a Forward P/E ratio of 5.58. For comparison, its industry has an average Forward P/E of 10.56, which means Synchrony is trading at a discount to the group.
Investors should also note that SYF has a PEG ratio of 0.24 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.55 based on yesterday's closing prices.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.