Down -13.15% in 4 Weeks, Here's Why You Should You Buy the Dip in Synchrony (SYF)

Core Viewpoint - Synchrony (SYF) has faced significant selling pressure, resulting in a 13.2% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating a potential turnaround for the stock [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 typically indicating oversold conditions [2]. - SYF's current RSI reading is 27.81, suggesting that the heavy selling may be exhausting itself and a price reversal could be imminent [5]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for SYF, leading to a 15.6% increase in the consensus EPS estimate over the last 30 days [6]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [6]. Group 3: Analyst Ratings - SYF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7].