Synchrony Collaborates With Daybreak, Expands CareCredit Offering

Partnership Overview - Synchrony Financial (SYF) announced a three-year partnership with Daybreak, a provider of at-home sleep health solutions, allowing customers to use Synchrony's CareCredit card for flexible financing of Daybreak's FDA-cleared sleep apnea devices and diagnostic kits [1] - The partnership aligns with Synchrony's strategy to expand its health and wellness offerings, tapping into a growing market that prioritizes sleep health as a foundation for overall well-being [3] Market Opportunity - Sleep disorders affect approximately 50-70 million Americans, creating a significant market opportunity for accessible and cost-effective solutions [2] - Traditional in-lab sleep studies often involve high out-of-pocket expenses, making Daybreak's at-home solutions combined with CareCredit financing a more accessible option for consumers [2] Financial Impact - Health and Wellness accounted for 17.3% of Synchrony's total interest and fees on loans in Q3 2024 [4] - The partnership is expected to aid Synchrony in increasing period-end loan receivables and interest and fees on loans, especially as the Health and Wellness segment's purchase volumes declined 3% year-over-year in Q3 2024 [5] Stock Performance - Synchrony's shares have gained 56.9% in the past six months, outperforming the industry's 22.5% growth [6] Industry Context - Synchrony currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence in its performance [7] - Other top-ranked stocks in the finance space include ProAssurance Corporation (PRA), Kemper Corporation (KMPR), and CNO Financial Group, Inc (CNO), with PRA also holding a Zacks Rank 1 and KMPR and CNO carrying a Zacks Rank 2 (Buy) [7]