We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Synchrony Financial Rides on Buyouts, Rising Costs a Woe
Read MoreHide Full Article
Synchrony Financial’s (SYF - Free Report) solid organic and inorganic strategies backed by strong financial health, position it well for long-term growth. The company’s top line has displayed solid growth over the past three years driven by its rapidly growing interest income as well as inorganic growth strategies.
The company’s substantial inorganic growth since 2013 is worth a mention. Its CareCredit unit acquired the Citi Health Card portfolio to further expand its healthcare acceptance network in the United States. The buyout of GPShopper also created new mobile solutions for Synchrony Financial’s retail partners.
CareCredit has been significantly contributing to the company’s growth. As a leading provider of promotional financing to consumers for health and personal care procedures, products or services, this unit has seen consistent increase in interest and fees on loans which favored the company’s overall top-line growth.
Synchrony Financial’s continuous investment in technology has not only upgraded its offerings but has also helped it establish a strong position in the market.
Its consistent cash flow generation supports capital deployment activities. Apart from buyouts, the company has been deploying capital through share buybacks and dividend payments in order to enhance shareholders’ value.
However, the company has been witnessing a steep rise in its expenses since 2013, the year of its inception. The rising costs put pressure on its bottom line.
In addition, increasing allowance for loan losses and rising fraud related loss also continues to hurt its profitability.
Zacks Rank & Stocks to Consider
Synchrony Financial presently carries a Zacks Rank #3 (Hold).
Green Dot delivered positive surprises in each of the last four quarters, with an average beat of 27%.
Western Union delivered positive surprises in three of the last four quarters, with an average beat of 9.1%.
Total System delivered positive surprises in each of the last four quarters, with an average beat of 5.7%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Synchrony Financial Rides on Buyouts, Rising Costs a Woe
Synchrony Financial’s (SYF - Free Report) solid organic and inorganic strategies backed by strong financial health, position it well for long-term growth. The company’s top line has displayed solid growth over the past three years driven by its rapidly growing interest income as well as inorganic growth strategies.
The company’s substantial inorganic growth since 2013 is worth a mention. Its CareCredit unit acquired the Citi Health Card portfolio to further expand its healthcare acceptance network in the United States. The buyout of GPShopper also created new mobile solutions for Synchrony Financial’s retail partners.
CareCredit has been significantly contributing to the company’s growth. As a leading provider of promotional financing to consumers for health and personal care procedures, products or services, this unit has seen consistent increase in interest and fees on loans which favored the company’s overall top-line growth.
Synchrony Financial’s continuous investment in technology has not only upgraded its offerings but has also helped it establish a strong position in the market.
Its consistent cash flow generation supports capital deployment activities. Apart from buyouts, the company has been deploying capital through share buybacks and dividend payments in order to enhance shareholders’ value.
Quarter to date, shares of Synchrony Financial have gained nearly 25% whereas the Zacks Financial- Miscellaneous Services industry has rallied 6%.
However, the company has been witnessing a steep rise in its expenses since 2013, the year of its inception. The rising costs put pressure on its bottom line.
In addition, increasing allowance for loan losses and rising fraud related loss also continues to hurt its profitability.
Zacks Rank & Stocks to Consider
Synchrony Financial presently carries a Zacks Rank #3 (Hold).
Investors interested in the same space can consider some better-ranked stocks like Green Dot Corporation (GDOT - Free Report) , Western Union Company (WU - Free Report) and Total System Services, Inc. . All of these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Green Dot delivered positive surprises in each of the last four quarters, with an average beat of 27%.
Western Union delivered positive surprises in three of the last four quarters, with an average beat of 9.1%.
Total System delivered positive surprises in each of the last four quarters, with an average beat of 5.7%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>