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Synchrony Financial (SYF) is a leading consumer financial services company in the United States, headquartered in Stamford, Connecticut. Valued at $27.8 billion by market cap, Synchrony operates as one of the largest providers of private-label credit cards, co-branded credit cards, consumer installment loans, and savings products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and SYF perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the credit services industry. SYF's market leadership is fueled by its vast partner network, comprising national retailers, local merchants, and healthcare providers, paired with a robust digital platform. The company has been investing heavily in digital transformation, with strong adoption of its mobile app, contactless payments, and AI-driven fraud detection.
SYF shares are trading 1.1% below from their 52-week high of $77.41, achieved recently on Sept. 5. Over the past three months, SYF stock has gained 24.5%, outpacing the broader Dow Jones Industrial Average’s ($DOWI) 9.4% rise during the same time frame.
Shares of SYF surged 17.7% on a YTD basis, outperforming $DOWI’s YTD gains of 8.5%. In addition, the stock climbed 56.5% over the past 52 weeks, compared to $DOWI’s 11.2% returns over the last year.
To confirm the bullish trend, SYF has been trading above its 50-day and 200-day moving averages since May.
On Jul. 22, SYF shares rose 1% after reporting its Q2 results. Its EPS came in at $2.50, comfortably surpassing Wall Street’s estimate of $1.72, reflecting robust profitability and effective expense management. Net interest income rose to $4.52 billion, slightly ahead of the $4.50 billion forecast, supported by higher loan balances and resilient consumer spending.
In the competitive arena of credit services, American Express Company (AXP) has lagged behind SYF, with a 15.1% rise on a YTD basis and 30.3% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on SYF’s prospects. The stock has a consensus “Moderate Buy” rating from the 25 analysts covering it, and the mean price target of $79.25 suggests a potential upside of 3.6% from current price levels.
