Back to top

Synchrony Financial Braces Portfolio With Loop Commerce Buy

Read MoreHide Full Article

Synchrony Financial (SYF - Free Report) recently completed its Loop Commerce acquisition. The company is now known as Loop Commerce, a Synchrony Solution. However, financial terms of the transaction were not disclosed.

With the buyout of this digital and in-store gifting service providing company, Synchrony will be able to expand its technology capabilities with better product lines for its customers. This will include GiftNow, an award winning, patented platform and service for digital as well as in-store gifting services. While on one hand, the acquirer’s technology portfolio will be enhanced, on the other, the company will focus more on digital personalized experience.

The company expects to enrich customer relations and encourage its retention by adding technical and gifting expertise for addressing swelling demand for transformational services.

Notably, Loop Commerce will be able to strengthen its offerings from Synchrony’s deep financial services.

The acquisition will integrate the technology and commerce of both companies, creating a huge market opportunity in G-Commerce for Synchrony Financial.

Moreover, the consolidated entity will be able to fast track investments in innovation and boost growth for their retail customers as well as partners.

Synchrony has always pursued strategic acquisitions for ramping up its growth and driving its portfolio capabilities. Last year, the company also closed its acquisition of Citi Health Card portfolio and GPShopper. While the former transaction helped Synchrony expand its network in the United States, the latter aided it to create new mobile solutions for the company’s retail partners.

These acquisitions are supported by its strong balance sheet. Cash and cash equivalents of the company have increased 12.4% to $13.04 million as of Mar 31, 2018. The company also witnessed a strong financial/capital position with total liquidity of $25 billion.

In the past year, shares of this Zacks Rank #3 (Hold) premier consumer financial services company have rallied 23.3%, easily outperforming the industry’s growth of 9.23%.

Stocks to Consider

Investors interested in the Financial - Miscellaneous Services industry may consider these following stocks namely, TCG BDC, Inc. (CGBD - Free Report) , Financial Engines, Inc. and American Express Company (AXP - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

TCG BDC is an externally managed specialty finance company, focused on providing flexible financing solutions in the United States. The stock carries a Zacks Rank #2 (Buy) and managed to pull off an average trailing four-quarter positive surprise of 9.52%.

Financial Engines offers discretionary portfolio management, investment advice, financial and retirement income planning among others. It holds a Zacks Rank of 2. The company delivered an average four-quarter positive earnings surprise of 2.96%.

American Express and its subsidiaries offers charge and credit payment card products and travel-related services across the globe. With a Zacks Rank of 3, it came up with an average four-quarter beat of 3.5%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

American Express Company (AXP) - free report >>

Synchrony Financial (SYF) - free report >>

TCG BDC, Inc. (CGBD) - free report >>