5 Reasons to Add Synovus (SNV) Stock to Your Portfolio Now

Core Viewpoint - Adding Synovus Financial Corp. (SNV) stock to a portfolio is considered a wise decision due to strong fundamentals and growth potential, with a Zacks Rank 2 (Buy) indicating analyst optimism [1] Earnings Growth - SNV's earnings have grown by 9.3% over the last three to five years, with a projected decline of 1.5% for 2024, but an expected rise of 16% in 2025 [2] Mergers & Acquisitions - The company has been actively investing in mergers and acquisitions to enhance operations, including a 60% equity interest acquisition in Qualpay on June 1, 2023, and the acquisition of FCB Financial Holdings in 2019 [3] Balance Sheet Strength - As of June 30, 2024, SNV's total debt was $2.28 billion, while cash and cash equivalents stood at $2.29 billion, supported by long-term issuer credit ratings of BBB- and BBB, allowing access to favorable debt market rates [4] Capital Distributions - SNV has a robust capital deployment plan, including a $300 million share repurchase authorization and a 12% increase in its quarterly dividend to 38 cents per share in March 2023, reflecting strong balance sheet and liquidity [5] Return on Equity - The trailing 12-month return on equity (ROE) for SNV is 12.76%, significantly higher than the industry average of 9.07%, indicating superior utilization of shareholders' funds [6] Other Investment Opportunities - Other top-ranked stocks in the same sector include First Bancorp (FBNC) and First Community Corp (FCCO), both with Zacks Rank 2, showing upward revisions in earnings estimates and notable stock gains over the past six months [7][8]