Headquartered in Stamford, Connecticut, Synchrony Financial (SYF) offers digitally driven consumer financial services, including private-label and co-brand credit cards, installment loans, and savings products through Synchrony Bank. Boasting a market cap of approximately $30.5 billion, the company comfortably surpasses the $10 billion threshold that defines “large-cap” status and leverages its scale to support wide-ranging credit programs across major retailers and service providers. More News from Bar ...

This Week’s Deep-Value LandscapeEnergy and Financials once again dominate the upper tier of this week’s Acquirer’s Multiple® Large Cap Screen, reinforcing a now-familiar pattern: the market continues to discount highly cash-generative cyclical businesses despite leaner balance sheets, disciplined capital allocation, and structurally improved economics.Energy Still Sets the Pace in Deep ValueEquinor (EQNR) retains the No. 1 ranking with an Acquirer’s Multiple of 2.3 and a 11.9% free cash flow yield. Integrat ...

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Summary of Synchrony Financial Conference Call Company Overview - **Company**: Synchrony Financial - **Industry**: Financial Services, specifically focusing on consumer credit and payment solutions Key Points and Arguments Performance and Growth - Synchrony Financial had a strong year in 2025, renewing over 40 partners, including Walmart, and managing credit effectively [1][2] - The company is optimistic about growth heading into 2026, with successful launches such as Walmart OnePay and Amazon PayLater [2][3] - Credit performance is strong, with a positive trend in purchase volume, particularly in the non-prime segment [5][6] - The company reported a 2% increase in purchase volume in Q3, indicating a positive inflection point [6] Consumer Health and Spending Trends - Consumer spending has shown improvement, with average transaction volume and frequency increasing [5][6] - The company noted a distinction between prime and subprime cohorts, with super prime segments experiencing outsized growth due to stock market gains and consumer confidence [7][8] - Holiday sales from November 1st to Christmas were strong, with promotional activities driving growth [9][10] Credit Actions and Strategy - Delinquencies are at 4.5%, with charge-off rates consistent with expectations, indicating effective credit management [13][14] - The company is unwinding credit restrictions, focusing on health and wellness and digital platforms, while maintaining a disciplined approach to credit origination [25][28] - The goal is to return to a long-term growth framework of 7%-10% as the economy stabilizes [29] Platform Performance - Digital and health and wellness platforms are expected to see continued outsized growth, with significant investments made in these areas [15][16] - The Walmart partnership is highlighted as a key growth driver, with a technologically advanced program that integrates seamlessly into the Walmart ecosystem [20][21] - Lifestyle, home, and auto segments are recovering but lagging behind other platforms due to consumer caution on larger purchases [19][32] Competitive Positioning - Synchrony Financial has successfully renewed contracts with major partners, with 97% of balances secured through renewals [39] - The competitive landscape remains rational, with the company confident in its ability to win deals based on product capabilities and underwriting technology [37][38] - The company is focused on expanding distribution through non-traditional business development opportunities, integrating financing into various platforms [34][35] Financial Metrics and Capital Management - The company has a CET1 ratio over 13.5% and has increased its buyback program to $3.5 billion, indicating strong capital management [58] - The net interest margin (NIM) is expected to improve as liquidity conditions become more favorable, with a target to return to or exceed 16% [53][54] Future Outlook - Synchrony Financial is well-positioned for growth in 2026 and beyond, with a focus on technology investments and strategic partnerships [60] - The company emphasizes the importance of maintaining a disciplined approach to credit while capitalizing on growth opportunities in the consumer finance space [49][50] Additional Important Insights - The company is leveraging advanced underwriting systems like Prism to enhance credit performance and manage risk effectively [46][51] - There is a focus on integrating financing products into the purchasing path of consumers, which is seen as a key growth strategy moving forward [36][37]

Synchrony Financial (NYSE:SYF) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 5, Baird downgraded the stock to Neutral from Outperform, while maintaining its earlier price target of $82. Baird Downgrades Synchrony Financial (SYF) To Neutral, Maintains Price Target of $82 According to TipRanks, the firm told investors in a research note that despite being a recognized bank, it was ‘tough to chase’ its shares, given the stock’s recent rally and its exposure to lower-end consumers ...

Core Insights - Synchrony Financial (NYSE:SYF) is a prominent consumer financing company offering various credit products across sectors like retail, health, and home [1] - The company has a renewed partnership with Mitsubishi Electric Trane HVAC US LLC (METUS), enhancing financing options for HVAC solutions [2][3] - SYF's stock is currently priced at $80.40, reflecting a significant increase from its lowest price of $40.54 in the past year, with a market capitalization of approximately $30.49 billion [4][6] Stock Performance - SYF's stock shows a current price of $80.40, indicating a 1.58% increase or $1.25 from the previous trading session [4] - The stock has fluctuated between $79.16 and $80.65 today, with $80.65 being the highest price over the past year [4] - The trading volume for SYF today is 2,120,531 shares, indicating strong investor interest [5] Analyst Insights - Robert W. Baird has set a price target of $82 for SYF, suggesting a potential increase of 1.99% from the current stock price [2][6] - The strategic partnership with METUS, effective from October 1, 2025, aims to improve consumer experience through customizable financing options [3]

The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.Top 5 Upgrades: William Blair upgraded Rubrik (RBRK) to Outperform from Market Perform. The company reported "stellar beat-and-raise results" amid ongoing share gains in the cyber-resilience market, the firm tells investors in a research note.Oppenheimer upgraded Corpay (CPAY) to Outperform from Perform with a $380 price target. ...

Core Insights - The market continues to undervalue cyclical sectors such as Energy and Financials, despite their strong cash generation and solid business models [1][8] - Deep value opportunities are concentrated in capital-intensive sectors, with Energy, Financials, and Materials showing significant cash flow generation [9] Energy Sector - Equinor (EQNR) ranks first with an Acquirer's Multiple (AM) of 2.3 and a 12.0% free cash flow yield, indicating strong cash flow generation and low leverage [2] - Petrobras (PBR) is highlighted as one of the cheapest large caps globally, with an AM of 4.3 and a 27.0% dividend yield, suggesting that the stock is undervalued due to political concerns rather than operational performance [3] Financial Sector - Synchrony Financial (SYF) has an AM of 2.6 and a 9.2% shareholder yield, yet it trades as if a severe credit downturn is imminent, indicating a significant valuation disconnect [4] Materials Sector - Alcoa (AA) shows an AM of 6.3 and a 4.8% free cash flow yield, with potential for upside as the market currently prices in prolonged weakness in industrial metals [6] Defensive Value - Regulated and essential-service businesses are providing predictable earnings and stable distributions, offering defensive value in a market focused on growth [7] Macro Context - Despite soft macro sentiment, companies in Energy, Financials, and Materials are producing record free cash flow and maintaining low leverage, suggesting that market fears regarding credit stress and commodity peaks are overstated [8]

Core Insights - Synchrony will participate in a fireside chat at the 2025 Goldman Sachs Financial Services Conference on December 9, 2025, at 8:00 a.m. Eastern Time [1] - Synchrony is a leading consumer financing company that has been serving the needs of people and businesses for nearly 100 years, providing responsible access to credit and banking products [1] - The company supports over 400,000 small and midsize businesses and health and wellness providers across the United States [1] - Synchrony has been recognized as the 2 Best Company to Work For® by Fortune magazine and Great Place to Work® [1] Company Overview - Synchrony (NYSE: SYF) focuses on consumer financing across various sectors, including health, home, auto, and retail [1] - The company aims to enable healthier financial lives for tens of millions of people through its innovative products and experiences [1] Recent Developments - Synchrony announced a quarterly cash dividend of $0.30 per share of common stock [3]

Core Insights - Capital One (COF) and Synchrony Financial (SYF) are significant players in the consumer lending space, focusing on credit cards and related financing, with revenue primarily from interest income, transaction fees, and customer spending [1][35] - The Federal Reserve's interest rate adjustments raise questions about which firm presents a better investment opportunity [2] Group 1: Capital One Overview - Capital One acquired Discover Financial in May 2025 for $35 billion, becoming the largest U.S. credit card issuer by balances, enhancing its payments network and reducing reliance on Visa and Mastercard [3] - The company has a history of strategic acquisitions, transforming from a monoline credit card issuer to a diversified financial services firm with a presence in retail banking and digital banking [4] - Despite a slight revenue decline in 2020, Capital One has shown a five-year CAGR of 6.5% in revenues and 4.3% in net loans held for investment, with positive trends continuing into 2025 [5] Group 2: Financial Performance and Outlook for Capital One - Capital One's net interest income (NII) and net interest margin (NIM) have been increasing, benefiting from higher interest rates and steady demand for credit card loans [8] - NII grew at a CAGR of 6% over the five years ending in 2024, with NIM expanding from 6.63% in 2023 to 6.88% in 2024 [9] - The company faces challenges in consumer spending and auto lending, which may pressure asset quality and increase marketing and technology expenses [10] Group 3: Synchrony Financial Overview - Synchrony Financial leverages a strong distribution channel to offer a variety of products, including private-label credit cards, and has made strategic acquisitions to enhance its digital capabilities [11][12] - Recent partnerships with major companies like PayPal and Walmart have expanded its ecosystem and e-commerce reach [13] Group 4: Financial Performance and Outlook for Synchrony Financial - Synchrony Financial's revenues experienced a five-year CAGR of 2.6% but faced a decline in the first nine months of 2025 due to the absence of a one-time gain from the previous year [15] - Management revised its 2025 revenue guidance down to $15-$15.1 billion, reflecting higher Retailer Share Arrangements (RSAs) and lower loan receivables [18] - The company has a solid liquidity position with $16.2 billion in cash and cash equivalents as of September 30, 2025, indicating sustainable capital distribution plans [14] Group 5: Comparative Analysis - The Zacks Consensus Estimate indicates a significant revenue growth for Capital One in 2025 and 2026, with year-over-year growth of 35.6% and 17.9%, respectively, while Synchrony Financial's growth is more modest at 2.7% and 4.6% [20][21] - Capital One's stock is trading at a forward P/E of 10.95, higher than its five-year median, while Synchrony Financial's P/E is 8.47, also above its historical average [25] - Capital One's return on equity (ROE) is 10.94%, significantly lower than Synchrony Financial's 22.96%, indicating different efficiencies in utilizing shareholder funds [27] Group 6: Dividend Performance - Capital One increased its dividend by 33.3% to $0.80 per share in November 2025, while Synchrony Financial raised its dividend by 20% to $0.30 per share in January 2025 [29]