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Synchrony (SYF) Expands CareCredit Offering With Destination Pet
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Synchrony Financial (SYF - Free Report) recently announced that it has entered into a multi-year agreement with Destination Pet to provide its CareCredit health and wellness cards to pet owners. The CareCredit card will be available for use at Destination Pet’s locations across the country, including pet resorts. This partnership is SYF’s first-ever collaboration with a pet resort company.
This move bodes well for Synchrony Financial, as wider use of CareCredit should boost the top line in the future. Health and Wellness accounted for 16.4% of the total interest and fees on loans of SYF in the third quarter of 2023. It is evident from this partnership that SYF aims to expand its CareCredit offerings to new customers with attention paid to health systems. This move will also lead to higher contributions from this segment and a rise in the loan receivables portfolio, leading to higher interest income and fees on loans. The company expects loan receivables growth of more than 10% in 2023.
The CareCredit card will allow pet owners to secure financing for services like daycare, boarding, training, grooming and veterinary care, expanding their payment options. This card will also enable pet owners to pay for a single service or pre-pay for a bigger package to be utilized over time. Pet parents can check if they prequalify for a CareCredit credit card without impacting their credit score in real time. They can apply on any smart device or over their phone. Once approved, pet parents can make the payment immediately. Short-term and long-term promotional financing options will be available depending on the purchase amount.
Partnerships similar to the current one are expected to solidify CareCredit’s presence across the pet care space. CareCredit is presently offered in 25,000-plus vet practices in the United States, and expanding the reach of CareCredit financing solutions also bolsters the purchasing power of consumers. SYF is expected to pursue continuous efforts to offer advanced credit products for the evolving needs of customers.
Price Performances
Shares of Synchrony have gained 8.6% in the past month compared with the industry’s 5% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Synchrony currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Finance space are Everest Group, Ltd. (EG - Free Report) , Assurant, Inc. (AIZ - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) . While Everest Group presently sports a Zacks Rank #1 (Strong Buy), Assurant and Axis Capital carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Everest Group has a solid track record of beating earnings estimates in three of the last four quarters, missing once, the average being 24.5%.
The Zacks Consensus Estimate for EG’s 2023 and 2024 EPS is pegged at $55.6 and $62.6, indicating a year-over-year increase of 105.3% and 12.6%, respectively.
Assurant has a solid track record of beating earnings estimates in each of the last four quarters, the average being 42.4%.
The Zacks Consensus Estimate for AIZ’s 2023 and 2024 EPS is pegged at $14.59 and $15.21, indicating a year-over-year increase of 31.1% and 4.3%, respectively.
Axis Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 22.5%.
The Zacks Consensus Estimate for AXS’s 2023 and 2024 EPS is pegged at $8.56 and $9.55, indicating a year-over-year increase of 47.3% and 11.6%, respectively.
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Synchrony (SYF) Expands CareCredit Offering With Destination Pet
Synchrony Financial (SYF - Free Report) recently announced that it has entered into a multi-year agreement with Destination Pet to provide its CareCredit health and wellness cards to pet owners. The CareCredit card will be available for use at Destination Pet’s locations across the country, including pet resorts. This partnership is SYF’s first-ever collaboration with a pet resort company.
This move bodes well for Synchrony Financial, as wider use of CareCredit should boost the top line in the future. Health and Wellness accounted for 16.4% of the total interest and fees on loans of SYF in the third quarter of 2023. It is evident from this partnership that SYF aims to expand its CareCredit offerings to new customers with attention paid to health systems. This move will also lead to higher contributions from this segment and a rise in the loan receivables portfolio, leading to higher interest income and fees on loans. The company expects loan receivables growth of more than 10% in 2023.
The CareCredit card will allow pet owners to secure financing for services like daycare, boarding, training, grooming and veterinary care, expanding their payment options. This card will also enable pet owners to pay for a single service or pre-pay for a bigger package to be utilized over time. Pet parents can check if they prequalify for a CareCredit credit card without impacting their credit score in real time. They can apply on any smart device or over their phone. Once approved, pet parents can make the payment immediately. Short-term and long-term promotional financing options will be available depending on the purchase amount.
Partnerships similar to the current one are expected to solidify CareCredit’s presence across the pet care space. CareCredit is presently offered in 25,000-plus vet practices in the United States, and expanding the reach of CareCredit financing solutions also bolsters the purchasing power of consumers. SYF is expected to pursue continuous efforts to offer advanced credit products for the evolving needs of customers.
Price Performances
Shares of Synchrony have gained 8.6% in the past month compared with the industry’s 5% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Synchrony currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Finance space are Everest Group, Ltd. (EG - Free Report) , Assurant, Inc. (AIZ - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) . While Everest Group presently sports a Zacks Rank #1 (Strong Buy), Assurant and Axis Capital carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Everest Group has a solid track record of beating earnings estimates in three of the last four quarters, missing once, the average being 24.5%.
The Zacks Consensus Estimate for EG’s 2023 and 2024 EPS is pegged at $55.6 and $62.6, indicating a year-over-year increase of 105.3% and 12.6%, respectively.
Assurant has a solid track record of beating earnings estimates in each of the last four quarters, the average being 42.4%.
The Zacks Consensus Estimate for AIZ’s 2023 and 2024 EPS is pegged at $14.59 and $15.21, indicating a year-over-year increase of 31.1% and 4.3%, respectively.
Axis Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 22.5%.
The Zacks Consensus Estimate for AXS’s 2023 and 2024 EPS is pegged at $8.56 and $9.55, indicating a year-over-year increase of 47.3% and 11.6%, respectively.