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Synchrony Partners With PSIvet, Expands CareCredit Offering

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Synchrony Financial (SYF - Free Report) recently announced that it has partnered with PSIvet to provide the company’s CareCredit health and wellness credit card to pet owners. The card will be offered through more than 5,500 independent veterinary practices PSIvet works with. Convenient financing options will enable pet owners to get the highest level of care for their pets.

The move bodes well for Synchrony, as wider use of CareCredit should boost the top line in the future. This is evident from the partnership that SYF aims to expand its CareCredit offerings to new customers with attention paid to health systems. Health and Wellness accounted for 17.2% of the total interest and fees on loans of SYF in the second quarter of 2024. This partnership 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 CareCredit card will allow pet owners to secure financing for all kinds of veterinary services, diagnostics and treatments, expanding their payment options. Pet parents can check if they prequalify for a CareCredit credit card without impacting their credit score in real time. They can apply from any smart device including their phones. Once approved, pet parents can make the payment immediately.

Partnerships similar to the current one are expected to solidify CareCredit’s presence across the pet care space. It partners with veterinary practices aiding these to streamline payment processes, improving cash flows and lowering accounts receivables. 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.

Synchrony’s Price Performance

Shares of Synchrony have gained 18.9% in the past six months compared with the industry’s 11% growth.

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SYF’s Zacks Rank & Key Picks

Synchrony currently carries a Zacks Rank #3 (Hold).

Investors interested in the broader Finance space may look at some better-ranked players like Jackson Financial Inc. (JXN - Free Report) , Aflac Incorporated (AFL - Free Report) and WisdomTree, Inc. (WT - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Jackson Financial’s current-year earnings is pegged at $18.49 per share, which indicates 44% year-over-year growth. It witnessed two upward estimate revisions in the past 60 days against no downward movement. The consensus mark for JXN’s current-year revenues indicates a 116.7% surge from a year ago.

The Zacks Consensus Estimate for Aflac’s current-year earnings is pegged at $6.75 per share, which indicates 8.4% year-over-year growth. It witnessed one upward estimate revision in the past 30 days against no downward movement. AFL beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 8.2%.

The Zacks Consensus Estimate for WisdomTree’s 2024 earnings indicates 67.6% year-over-year growth. In the past two months, WT has witnessed two upward estimate revisions against none in the opposite direction. It beat earnings estimates twice in the past four quarters and met on the other occasions, with an average surprise of 5.9%.

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